Home prices are still on an upward trajectory, but the speed at which they’re rising has slowed for the third-straight month, according to a new report released this past week by Homes.com.
The report analyzed home prices in March (based on the data collected to date), price trends across major cities, and what the latest developments in the housing market mean for homebuyers. According to the preliminary estimates, home prices continued to go up in March, but the rate of price increases slowed for the third consecutive month.
Year-over-year, prices rose 2.2% in March, 2.7% in February, and 3.6% in January. In dollar terms, the median home price went up $8,000 from March of last year to March of this year, rising from $372,000 to $380,000. Prices have increased for 21 consecutive months, with price appreciation peaking at 5.6% in December, the report stated
In addition to the slowing price growth in recent months, there was an increase in the number of homes for sale and a small decline in mortgage rates in March. Lower mortgage rates make buying a home more affordable, and more homes for sale equates to higher leverage for homebuyers. Combined, the report showed factors point to a slight shift away from a seller’s market and towards a buyer’s market.
Homes.com said the Northeast and Midwest continued to see the strongest price appreciation in March. Of the 10 markets with the largest price increases, four were in the Northeast, and four were in the Midwest. Cleveland led the way, with prices rising more than 10% in the past year, followed by Chicago, New York and Pittsburgh.
By contrast, the report showed the South only had one market, Austin, among the 10 cities with the largest price increases, while five Southern markets were among the bottom 10. Four markets saw price declines in March, with the state of Florida accounting for three of the four. The four markets with declines were Orlando, Jacksonville, San Francisco and Tampa.
The data shared in this report could change slightly once all home sales are accounted for, Homes.com noted.
For more information and insights on the latest homebuying and selling market trends, visit the Homes.com Press Room.
