President Biden’s policies are destroying this nation, with the real-estate sector falling fast now.
The prices of single-family homes in the U.S. saw a modest increase in April, maintaining a consistent growth pattern. However, the landscape of the housing market may shift due to the rising costs of borrowing, which could potentially dampen buyer demand and increase housing availability.
Data shows that home prices edged up by 0.2% from the previous month, following a stable March, according to a recent report. Over the past year ending in April, there was a 6.3% increase in home prices, a slight deceleration from the 6.7% rise recorded in March.
Case-Shiller: National House Price Index Up 6.3% year-over-year in April
FHFA: House Prices Increased 0.2% in April, up 6.3% YoY https://t.co/ACQ6SsS1Fp pic.twitter.com/8XLwYmcuSV
— Bill McBride (@calculatedrisk) June 25, 2024
Anju Vajja, the deputy director for the Division of Research and Statistics, commented on the trend: “In April, we observed a continued, albeit slower, rise in house prices. This slight deceleration can be attributed to the incremental increases in mortgage rates and housing stock, signaling a move towards a more balanced market.”
A week prior, a significant real estate association highlighted a decline in existing home sales, marking the third consecutive monthly drop. This downturn is largely due to the recent uptick in mortgage rates and higher home prices, which together have made home ownership less accessible for many. Moreover, the supply of available homes has risen significantly, reaching the highest level seen in almost two years.
Home Prices Reach New Record Highs, Yet ‘Signs Of Normalization’ Emerge
U.S. residential house prices hit new all-time highs in April 2024, but growth pace slowed, potentially indicating a normalization.
San Diego led annual gains with a 10.3% increase, followed by New York and… pic.twitter.com/Rhaf5QPRjA
— Benzinga (@Benzinga) June 25, 2024
Mortgage rates have also seen notable fluctuations; the average rate for a 30-year fixed mortgage peaked at a six-month high of 7.22% in early May, according to figures from a mortgage finance agency. Although the rates have slightly decreased since peaking, they still remain high compared to the same period the previous year.
🏠 HPI up 0.2% MoM, 6.3% YoY. East South-Central leading at 1.4% MoM. All regions report YoY increase, New England & Mid Atlantic top at 8.5%. Despite house prices continued to rise in April, market is showing signs of normalization as inventory rises & price pressures ease. pic.twitter.com/P16Wtm8Qbe
— Ali Dhanji, AAMS® (@DhanjiatRJ) June 25, 2024
Following a robust performance in the first quarter with double-digit growth in residential investment, the housing market has experienced a slight pullback. Despite these challenges, all nine census regions reported year-on-year price increases in April, with particularly strong growth in regions such as New England and the Middle Atlantic.
This dynamic suggests that while the market is cooling slightly, regional variations and the underlying strength of the economy are likely to continue influencing the trajectory of home prices in the near future.
Major Points
- U.S. single-family home prices saw a slight increase of 0.2% in April, maintaining steady growth.
- Year-over-year, prices rose by 6.3%, though the pace of appreciation slowed compared to previous months.
- Rising mortgage rates and a growing inventory of homes are beginning to impact the housing market, hinting at a shift towards normalization.
- The national average rate for a 30-year fixed mortgage reached a six-month high of 7.22% in early May.
- Despite some cooling, all nine census regions reported annual gains in house prices, with significant increases in regions like New England and the Middle Atlantic.
Conner T – Reprinted with permission of Whatfinger News
