Home prices weakened month to month, according to Black Knight. While still gaining, which they usually do at this time of year, the gains fell below their 25-year average. This after significantly outdoing their historical averages from February through June. It’s a signal that a slowdown in prices may be underway again.

Behind the cooling off: mortgage rates. They rose sharply last summer and fall, causing prices to drop. They then came down for much of the winter and a bit of the spring, causing home prices to turn higher again. Now rates are back over 7% again, hitting 20-year-plus highs in August.

Add to that, new listings rose from July to August, atypical for that period of the year. Some sellers may be trying to cash in on these historically high prices. Active inventory, however, is about 48% below the levels seen from 2017 to 2019.

“While the uptick in new listings is good news for home shoppers, inventory remains persistently low, even with record-high mortgage rates putting a damper on demand,” said Danielle Hale, chief economist for Realtor.com.

The jump in home prices since the start of the Covid pandemic, combined with much higher mortgage rates has crushed affordability.

It now takes roughly 38% of the median household income to make the monthly payment on the median-priced home purchase, according to Black Knight. That makes homeownership the least affordable it’s been since 1984.

  • totallynotarobot@lemmy.world
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    1 year ago

    Would be super fantastic if y’all could include geography in articles like this. Even narrow it down by continent if you’re really just trolling for clicks.

    • deconstruct@lemm.eeOP
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      1 year ago

      I intentionally left out the location.

      Personal finance, like legal advice, is region specific. Like Reddit, there are PF communities, like [email protected], to get specialized advice. The main community is treated as US centric.

      Curious what others think.

      • nieceandtows@lemmy.mlM
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        1 year ago

        Personal finance is about personal finance. This community is not region specific. There are people from all parts of the world here. Kindly specify the general location in the post; that would be very helpful.