House price growth is expected to slow down to 3.9% by September 2023
Growth in home prices slowed in September for the fourth consecutive month, according to the latest CoreLogic Home Price Index (HPI).
Home prices rose an annualized 11.4% in September, compared to 13.5% in August. According to CoreLogic, price growth is expected to continue at 3.9% year-on-year until September 2023.
As per the report, on a monthly basis, house prices declined by 0.5% in September as compared to August.
The latest data on the slowdown in price growth comes as mortgage rates hit a 20-year high earlier this month and housing demand continues to slump.
“The rapid rise in prices during the COVID-19 pandemic has caused many US housing markets to reach levels that are completely unaffordable for potential local homebuyers,” said Selma Hepp, CoreLogic’s interim chief economist. “In the West Coast and Mountain-West states, home prices are slowing from this spring’s highs but are up from a year ago.”
“In contrast, markets that continue to see the migration of higher-income households are still experiencing increases in home prices that are significantly higher than the national rate of appreciation,” Hepp continued.
If you’re interested in taking advantage of your increased home value, you might consider applying for a cash-out refinance to access the equity you’ve built up in your home. You can visit Credible to find out your personalized interest rate without affecting your credit score.
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Southeastern markets show biggest home price increases
CoreLogic said Southeastern states saw the most significant price gains and Florida recorded the highest appreciation for the “eighth consecutive month.” Miami experienced the highest annual growth of the 20 largest metros, with an increase of 25.6%.
Behind Florida, the two states posting the biggest gains were South Carolina, with a 17.6% increase, and Tennessee, with a 17.4% bump.
CoreLogic said, “Although rising mortgage rates are dampening housing demand nationwide, out-migration from more expensive states in the West Coast and Northeast is fueling homebuyer enthusiasm for properties in the relatively more affordable Southeastern states.” ”
If you’ve seen significant home value growth over the past year and want to tap into your equity, you may want to consider a cash-out refinance. You can visit Credible to compare multiple mortgage lenders at once and choose the one with the best interest rate for you.
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Economists Say Buyers Are Postponing Home Purchases Till 2023
The reduction in home prices has not been fast enough that home buyers have to bear the extra cost. Rising mortgage rates and still-high home prices have put housing “out of reach” for many potential homeowners, according to George Ratiu, a senior economist at Realtor.com.
In September, pending home sales declined for the fourth month in a row. Pending transactions fell 10.2% month-on-month and fell 31.0% year-on-year, According to the National Association of Realtors (NAR).
“As we look to the rest of the year, we can expect interest rates to continue their upward trend,” Ratiu said. in a statement, “For many buyers, especially first-timers, higher borrowing costs mean home purchase may have to be postponed until next year.”
“Prices are falling from their summer peak, but not fast enough to offset much higher rates,” Ratiu continued. “At the same time, with inventory still rising and time-to-market getting longer, especially as we move into the colder months, sellers who expect to close a deal before the end of the year, They should expect more flexibility in negotiations.”
If you want to get equity out of your home before rates go up, you might consider applying for a cash-out mortgage refinance. To see if it is the right option for you, contact Credible to speak to a home loan expert and get all your questions answered.
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Credit: www.foxbusiness.com /