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Consumers, Experts Predict Home Price Growth to Slow

by Kelly Leighton on

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 where 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, less 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.

Topics

Home prices
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