Buyers who are exploring the home market today will benefit from a new trend in home prices. Since June, price growth has been slowing, leading to more affordable opportunities for first time and move up buyers.
Combined with a lower federal interest rate, now is one of the best times to start exploring available listings.
Home Price Growth in America’s Major Metropolitan Areas
Some of the most desirable areas have seen home prices remain almost flat, and some cities have even seen prices trend downwards.
Here are the monthly home price changes from the last reporting period:
- Atlanta +0.2%
- Chicago +0.1%
- Dallas +0.2%
- Las Vegas +0.1%
- Los Angeles +0.1%
- Miami -0.1%
- New York City -0.6%
- San Diego +0.4%
- San Francisco +0.2%
- Seattle -0.1%
- Washington D.C. +0.1%
Nationwide, home prices were up +3.1% when data was last collected in June, compared to +3.3% in the previous monthly report.
Why Does Price Change Matter?
Total change is still moderate today, but with home prices leveling, the entire market will become more affordable.
While sellers will have to list for lower prices to stay competitive, a more affordable marketplace could still work in their favor. It means that homes will spend less time on the market, reducing agent fees and other indirect costs.
If price growth continues to slow, the home building market should also pick up, which will lead to stronger activity in the construction sector. A healthy home building market results in more jobs and more money flowing through the economy. Stock market investors will benefit if they hold shares in companies that engage in the real estate and construction industries.
Significant Benefit for Buyers
Thanks to Fed rate cuts, the 30-year and 15-year average fixed mortgage rates have dropped significantly since January. Combined with lower prices, this will result in better overall savings for buyers.
The average 30-year fixed mortgage rate on August 28 was down to 3.79%, compared to a rate of 4.51% at the start of the year.
Overall, the market looks extremely promising. Buyers who have been waiting for the ideal home buying opportunity will find conditions to be significantly more favorable in September than in recent months.
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