Compared to the previous month, there was no change. The stagnant price activity fell short of the 0.7 percent gain reported for March and the 0.5 percent projected for April.
The latest activity points to a slowdown for home price appreciation. Similar trends were noted on the Standard & Poor's/Case-Shiller 20- and 10-city HPI, which showed small gains, with the former posting 0.2 percent month-over-month growth in April. This deceleration in the economy is good news for the housing recovery.
Giving home buyers a break
Rising property values have been a staple of the housing recovery. Despite the pace of appreciation, many consumers were able to purchase a home because of the numerous low cost mortgage options available. As a result, demand has been pent up, while sales have been mostly positive, with the exception of slower activity during the brutal winter that affected all sectors of the economy.
After some time, appreciation pushed home prices into the unaffordable ranges for many potential buyers, particularly first-time home buyers, and the slowdown can help them get back in the market. The Times said that appreciation needs to hit a sweet spot, which would put price growth at a pace that is mutually beneficial for buyers, sellers and builders.
"The healthiest thing for the housing market would be home price rises that thread the needle: high enough that homeowners are building equity and homebuilders have incentive to start new construction, but low enough that they don't significantly outpace wage growth and result in unaffordable housing and a painful correction," said
For information about low rate mortgage options and first-time home buyer programs that can help you get the financing you need while price growth is decelerating, contact the
Read the full story at http://www.prweb.com/releases/2014/07/prweb11998168.htm
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