Home Price Increases Slow in May
For a long while now, our mortgage loan company has been observing great jumps in home asking prices. This was due in a large part to the torrential release of demand, pent up from years of recession, which overwhelmed the supply of homes on the market and put strains on the construction industry. Finally, however, it would seem that the market is beginning to correct itself and restoring some measure of stability for consumers.
According to the Trulia Price Monitor, asking prices in May showed a distinct slowing trend. With a year-over-year increase of only 8.0%, prices increased at their lowest rate in the past thirteen months. May’s rate is still well above the long-term historical norm, but it tells of a market that is more balanced and sustainable.
Though prices are slowing down across the country, the biggest slowdowns have been occurring in the Western United States. In the previous year, it was the West that saw the greatest increases in home prices. Today, of the top ten markets with the biggest price gains, over half were outside the West. All in all, this is good news for consumers who are looking for a little more stability in the housing market.
