Appreciation in Q2 was slowest in 2 years
US home prices keep rising but the pace of appreciation appears to be slowing.
ATTOM Data Solutions says that the rate of increases in the second quarter of 2018 was the slowest annual appreciation since Q2 2016, following more than a year of deceleration.
The median price for single-family homes and condos nationwide increased 6.3% year-over-year, to a new record high of $255,000.
"Annual home price appreciation nationwide has now slowed for five consecutive quarters following a post-election spike to double-digit appreciation in the first quarter of 2017," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Although home sellers are still in the driver's seat of this housing market, moderating home price appreciation is good news for prospective homebuyers and signals that rising mortgage rates and other housing headwinds are cooling red-hot home price appreciation in some areas."
Two thirds of local markets saw slower pace
Price acceleration was down in 66% of local markets, 80 of the 122 metros surveyed including Los Angeles, Philadelphia, Chicago, Houston, and Dallas-Fort Worth.
In the other 42 markets, price appreciation increased. These markets included New York, San Francisco, Detroit, and Washington, DC.
The median price per square foot for homes that sold for $1 million or more in the second quarter increased 5.4% from a year ago, accelerating from 3.2% annual appreciation in the previous quarter and from 3.4% annual appreciation in Q2 2017.
For homes that sold for under $1 million in the first quarter, the median price increased 6.5% from a year ago, but that was down from 8.2% annual appreciation in the previous quarter and down from 9.0% annual appreciation in Q2 2017.
