A sign was posted in front of a home for sale in San Rafael, California on August 7, 2024.
Justin Sullivan | Getty Images
Overly inflated home prices, mortgage heights, increased supply and lower demand are all working together to cool the country’s housing market.
According to ICE, a mortgage technology company, annual home prices growth in June was just 1.3%, down from the 1.6% growth in May and the slowest rate in two years.
Almost a third of the largest 100 markets are currently showing annual price declines of at least full points from the recent highs, suggesting that more markets do the same. House prices for single families rose 1.6%, while apartment prices fell 1.4% nationwide.
Inventory has been steadily increasing over the past year, up 29% in June compared to the same month last year. However, profits this spring began to slow down this spring. The average rate for a 30-year fixed mortgage has hovered in the 6% range for most of the year.
“There are two competitive advantages in the housing market right now,” said Andy Walden, head of mortgage and housing market research at ICE. “While rising stock levels help make homes more affordable, prices can take more and more markets and home sales, making homeowners reluctant to make their lists.”
Regionally, prices still provide significant profits in the Northeast and Midwest. They are softening south and west. Cape Coral, Florida saw the biggest drop, with prices just over 9%. Austin and Tampa, like seven of California’s 10 major markets, are seeing prices drop.
