U.S. home prices increased 0.2% in September compared with October and were up 3.4% compared with September 2023, according to CoreLogic.
It was the slowest growth rate for home prices nationally in over a year, CoreLogic says in its latest home price index report.
Currently, the firm is predicting that home price growth will slow to 2.3% by the same time next year.
Miami continued to post the highest gain of tracked U.S. metro areas, at 6.8%, followed closely by Chicago at 6.7%.
Rhode Island reported the highest annual growth rate of all states, at 9%.
One reason home price growth is slowing is weakening demand.
Besides the uncertainty regarding the U.S. election and mortgage rate volatility, the mixed signals around the current state of the U.S. economy maybe be dampening demand and price appreciation, CoreLogic says in its report.
According to the latest numbers from the U.S. Bureau of Labor Statistics, the economy added just 12,000 jobs in October, the fewest in almost four years.
On the other hand, the most recent consumer spending data showed solid continued spending and an upbeat consumer outlook.
“Like much of the housing market at the moment, home prices remained relatively flat coming into the fall,” says Selma Hepp, chief economist for CoreLogic, in a statement. “Despite some improved affordability from lower mortgage rates during August, homebuyers mostly kept on the sidelines and decided to wait out the mortgage rate drop for a potentially better opportunity next year, when the current volatility, uncertainty surrounding the election’s outcome, and the impact on longer-term rates may be slightly clearer. And while the mortgage rate and economic outlook is full of questions, home prices are likely to maintain their leveled path until early next year when buyers return to the housing market.”
Photo: Frames For Your Heart