Are Home Prices Finally Ready to Cool Off?
After what was probably the hottest summer in recorded history, you're probably looking forward to cooler temperatures. Here's some good news: After rising almost all year, home prices may finally begin to cool soon, too.
Recent data from real estate analysts at Black Knight shows that home prices showed signs of weakened month-to-month growth, and here's why. While still gaining, which they usually do at this time of year, the gains fell below their 25-year average. This happened after significantly outdoing their historical averages from February through June.
"In addition to monthly gains slowing below long-term averages, Black Knight rate lock and sales transaction data also points to lower average purchase prices and seasonally adjusted price per square foot among recent sales," said Andy Walden, vice president of enterprise research at Black Knight.
However, some first-time buyers are still searching for affordability. It now takes roughly 38% of the median household income to make the monthly payment on the median-priced home purchase. This makes homeownership the least affordable it's been since 1984.
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