Las Vegas, Phoenix as well as Seattle continue to see the highest year-over-year gains within the index’s 20-city composite. Las Vegas home prices were 12 percent higher compared with November 2017. Phoenix saw an 8.1 percent annual increase, as well as Seattle’s gains came in at 6.3 percent. Seattle had been seeing double-digit cost increases in 2017. Just seven of the 20 cities reported higher cost increases within the year ended in November 2018 versus the year ended in October 2018.
“The pace of cost increases are being dampened by declining sales of existing homes as well as weaker affordability,” said David M. Blitzer, managing director as well as chairman of the index committee at S&P Dow Jones Indices in a Discharge.
Sales peaked in November 2017 as well as then began falling as mortgage rates rose. After rising steadily, rates began to drop again in November 2018, following a change in policy at the Federal Reserve. although the rate on the common 30-year fixed mortgage can be still higher today than in which was one year ago.
“Housing market conditions are mixed while analysts’ comments express concerns in which housing can be weakening as well as could affect the broader economy. Current low inventories of homes for sale – about a four-month supply – are supporting home prices. completely new home construction trends, like sales of existing homes, peaked in late 2017 as well as are flat to down since then,” added Blitzer.
Rising wages as well as continued growth in employment are all favorable, he added, as well as with prices moderating as well as rates currently not rising, the spring market could see a slight boost.
“Slower cost growth will help would likely-be buyers feel like their goal isn’t moving away faster than they can catch up. Against incomes rising at a roughly 3 percent pace, 4 percent home cost growth can be nearly at just the right pace,” said Danielle Hale, chief economist at Realtor.com.
WATCH: Existing home sales drop sharply