Home price growth is cooling as buyers face high rates

U.S. home price growth slowed in April, affecting potential buyers higher mortgage interest withdrawn from the market.

According to data from S&P CoreLogic Case-Shiller, prices rose 6.3% from a year earlier by a national measure, down from the 6.5% increase in March.

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Both prices and mortgage interest rates have risen in recent years have put pressure on buyers and kept listings tight as owners reluctant to part with their cheap pandemic-era loans stayed put. Borrowing costs rose above 7% again in April, pushing more house hunters to the sidelines and easing bidding wars for those who remained in the market.

Despite the slowdown, the national price measure is at a record level, according to S&P CoreLogic Case-Shiller data going back more than two decades.

“Heading into summer, the market is at record highs, once again testing its resilience during what has historically been a more active time of year,” said Brian Luke, head of commodities, real and digital assets at S&P Dow Jones Indices. a statement on Tuesday.

Price increases also in a benchmark of 20 cities slightly withdrawn, up from 7.2% in April. That is less than the increase of 7.5% in March. San Diego had the largest year-over-year price increase at 10.3%, while Portland, Oregon, had the smallest annual growth with a 1.7% gain.

For buyers, the outlook may be brightening. The share of sellers who dropped their list price was at the highest level since November 2022 and asking price growth has slowed, Redfin Corp. data shows. for the four weeks up to and including June 16. Homes in need of work are lingering on the market, the brokerage said, potentially opening up deal opportunities for customers willing to spend money on repairs.