The 20-city house-price index fell 1.3% in August, its second consecutive monthly decline. Year-over-year price appreciation rose 13.1%, reflecting the stronger conditions in 2021. The figure is down from 16% in July.
According to Market Watch,
Big picture: The growth rate of housing prices peaked in the spring and has been declining ever since. Buyers are scarce now that mortgage rates are above 7% and inflation remains high. Economists are debating how far U.S. home prices could moderate or even decline. Home-builder expectations for home sales over the next six months have fallen to their lowest level since 2012. The Mortgage Bankers Association is expecting a recession to hit in 2023.
What are they saying: “We expect the decline in home price growth to accelerate as sharply higher mortgage rates deliver a major blow to affordability and home sales,” said Nancy Vanden Houten, U.S. economist at Oxford Economics.