Home prices have dropped to the slowest annual appreciation in two years. In September, annual growth went down to 5.6 percent, the slowest year-over-year pace since September 2012. Furthermore, a greater drop to 5 percent is expected by September 2015.
Home prices continue to rise compared with this time last year but the rate of growth is clearly slowing as we exit 2014,” said Anand Nallathambi, CoreLogic’s chief executive.
Price growth slowed down as the number of homes for sale increased. This has both positive and negative effects. On the positive side, this may encourage more people to buy homes when growth is slow. And on the negative side, it will take much longer for equity to rise for home owners who may also be struggling with payments.
Even as there’s been a national slowdown, five states posted record highs for home prices in September,” CoreLogic reported. “Strong local labor markets in states such as energy-fueled North Dakota and Texas are supporting prices. Also, more than half of states were at or within 10% of their local home-price peak.”
Additionally, home prices were down 37 percent from the local peak, 34 percent and 30 percent in Nevada, Florida and Arizona respectively. With more positive macro-economic trends emerging in the United States, we can expect a moderate price growth for 2015.
Read more here – “Home-Price Growth Slows to Two-Year Low,” (Ruth Mantell, Market Watch).