After a year that saw accelerated growth for home prices, the market might possibly be starting to cool down a bit.
House prices increased during the pandemic, as the amount of available homes shrank.
But in September, housing prices rose 19.5% year over year, which is actually a slight come down from August’s 19.8% annual gain, according to the Standard & Poor’s CoreLogic Case-Shiller National Home Price Index.
Additionally, S&P’s 20-City Composite, which measures the price of houses in major areas such as Chicago, Minneapolis and Tampa, posted a 19.1% annual gain, which was both down from 19.6% a month earlier and the expected 19.3% annual gain. Taken all together, this is the first decrease in the annual gain since May 2020.
Now prices are still strong, as Yahoo reported that Phoenix posted a 33.% annual gain in September, while Tampa and Miami did well with a respective 27.7% and 25.2% year-over-year gain, all record highs.
But other cities didn’t quite put up those numbers, which is actually good news for anyone who’s been wanting to buy a house but couldn’t quite get a toehold in the currently booming market.
The leveling off is being attributed to homeowners beginning to feel comfortable selling their homes.
That is loosening up what has become a tight housing market, thus increasing the amount of supply and allowing for a more even balance between sellers and buyers.