The breakneck pace of home price growth from earlier this year appears to be slowing—and that’s not necessarily bad news for the housing market.
Home prices in June rose by 11.9% from a year ago, essentially unchanged from the year-over-year gain posted in May, according to CoreLogic. On a seasonally adjusted basis, prices in June went up by 0.6% from May, according to Capital Economics, the smallest gain in six months.
A pullback in home prices isn’t a major cause for concern, because prices are still going to rise—just not at as brisk a pace as we’ve seen over the past year. This should calm down those pundits who have fretted over a new crop of housing bubbles.
A report published last week from economists at Goldman Sachs GroupGS -0.25% offers three reasons why home price gains are likely to moderate:
Read more...Why Home-Price Growth Will Slow - Developments - WSJ
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