Home prices continue to appreciate nationwide, even amid rising borrowing costs due to an increase in mortgage rates. However, home prices may be showing some signs of slowing in the coming months, according to two housing reports released Tuesday.
Home prices nationwide rose 12.4 percent year over year in July, according to the latest report by CoreLogic. That marks the 17th consecutive month of growth in home prices.
A report by Clear Capital, also released Tuesday, showed home prices ticked up 10.2 percent year over year -- however, Clear Capital’s report reflected August data. The last time Clear Capital noted a double-digit yearly price gain was in mid-2006 during the housing bubble, according to the report.
CoreLogic experts predict that home prices will rise by 12.3 percent year over year in August.
But home prices likely will start to curtail in the second half of the year, says Mark Fleming, chief economist for CoreLogic.
“Price growth is expected to slow as seasonal demand wanes and higher mortgage rates have a marginal impact on home purchase demand," Fleming notes.
Clear Capital economists note that the low-tier price segment of the housing market showed the lowest quarterly gain in prices since April 2012 -- increasing just 2 percent.
"Considering the low tier price segment of the housing market led the recovery, the cooling in this segment will likely transfer through to the broader housing market," says Alex Villacorta, vice president of research and analytics at Clear Capital.