Buyers may start to see some relief over the next year.
According to CoreLogic’s Home Price Insights Report, home prices decreased 0.3% from June 2022 to July 2022. While they jumped 15.8% from July 2021 to July 2022, CoreLogic is predicting much smaller gains over the next 12 months. The report predicts that home prices will rise 0.3% from July to August, essentially matching June’s prices. However, home prices are expected to ditch the double-digit gains and only jump 3.8% from July 2022 to next July. Home prices have risen year over year each month for 126 straight months. However, this is the first time in more than a decade that home prices dropped from June to July.
Fannie Mae’s National Housing Survey Monthly in August found that 8% more consumers reported now is a good time to buy compared to July, however, the majority (73%) agree that it is still not. Additionally, fewer consumers reported now is a good time to sell, dropping 16% from July and 30% from August 2021. Only 59% of consumers reported now is a good time to sell; this is the lowest level since February 2021.
Some consumers are feeling optimistic about home prices, only 33% reported they believe they will increase, down 9% and the lowest level since May 2020. Yet, mortgage rates remain a concern, 61% said they believe they will continue to increase, up 11% from the previous month. Only 46% of Americans said getting a mortgage would be easy, down 2% and the lowest percentage in at least a year, while 50%, up from 47% a month prior, think it would be difficult, the highest percentage in at least a year.