Cotality Finds External Pressures Suppressing Home Price Growth
(Illustration courtesy of Cotality)
Widespread concern about personal finances, job prospects and potential tariff impacts are weighing on home prices, according to Cotality, Irvine, Calif.
The Cotality Home Price Index for April found the lowest home price growth in more than a decade.
“Housing market headwinds continue to challenge homebuying demand, but improved for-sale supply is providing buyers with more options and helping keep softer price pressures for those looking to buy this spring,” Cotality Chief Economist Selma Hepp said.
Hepp noted that while annual home price growth has slowed considerably, home prices have held up so far this spring and gains have mostly mirrored trends seen before the pandemic. “This is encouraging given the fears that consumer sentiment has faltered,” she said. “Cotality’s home price forecast for the coming month expects the solid home price trend to continue.”
The Northeast–which has been an outlier in recent months by posting solid growth–had several states reverse course in April, the report said. New York and Vermont posted home prices that were furthest from their peaks. Also, more markets are posting negative growth, with Hawaii, Florida, Texas, and Washington D.C. seeing price appreciation dip to -2%, -0.8%, -0.7%, and -0.6%, respectively.
“It is important to note that the number of markets where home prices are declining has not grown notably,” Hepp explained. “About 14 of the 100 largest markets reported annual declines, up from 12 markets last month, with the majority concentrated in Florida and Texas.”
Florida continues to course-correct after years of explosive growth. Cotality said several markets in the state are seeing price declines–the state overall saw -0.8% price appreciation in April-and all five of the U.S.’s most at-risk markets are located in the Sunshine State. Florida also saw its median sales price dip below the national median to $390,000, dropping the state out of the top 20 most expensive markets.
