“Home-price gains continued slowing in September, another sign that rising mortgage rates are helping sap the momentum out of the housing market. The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 5.5% in September, down from the 5.7% year-over-year increase reported in August.”
-Laura Kusisto, Wall Street Journal.
“House prices are coming back to earth across the country as sellers and buyers reach an uneasy truce. The 5.1% annual increase is the slowest pace of appreciation since late 2016, but it’s still nearly double the rate of wage gains.”
-Andrea Riquier, Market Watch.
“There are three fundamental drivers of the slowdown in the housing market, none of which are likely to soon reverse. (1) mortgage rates have increased 100bp since 2017, putting pressure on affordability; (2) house prices have grown faster than rents and incomes since 2012, exacerbating the impact of rising rates; and (3) the 2017 tax law changes reduced the tax benefits of owner-occupied housing relative to renting.”
“The U.S. housing market is slowing. Expect this trend to continue. From 2014-2017, home prices’ appreciation accelerated from a roughly 4% annual increase to around 7%. Over the next three years, Goldman expects home price appreciation to slide back to a 3%-4% annual pace of increases.”
-Myles Udland, Yahoo! Finance.