CoreLogic: Annual Home Price Slowdown Continues in September

(Illustrations courtesy of CoreLogic)

U.S. home price growth continued to cool in September, slowing to a 3.4% year-over-year pace, according to CoreLogic, Irvine, Calif.

Compared with August, home prices rebounded to post a very slight uptick (0.02%) following months of modest monthly declines, the CoreLogic Home Price Index reported. “Home price levels have been relatively flat since late summer,” the report said.

Besides the uncertainty regarding the U.S. election and mortgage rate volatility, the mixed signals around the current state of the U.S. economy may be dampening demand and price appreciation, CoreLogic said. According to the Bureau of Labor Statistics last week, the economy added just 12,000 jobs in October, the fewest in almost four years.  

“Like much of the housing market at the moment, home prices remained relatively flat coming into the fall,” CoreLogic Chief Economist Selma Hepp said. “Despite some improved affordability from lower mortgage rates during August, homebuyers mostly kept on the sidelines and decided to wait out the mortgage rate drop for a potentially better opportunity next year, when the current volatility, uncertainty surrounding the election’s outcome, and the impact on longer-term rates may be slightly clearer.”

Hepp noted that while the mortgage rate and economic outlook is full of questions, “home prices are likely to maintain their leveled path until early next year when buyers return to the housing market.”