Homebuyers remain optimistic as home prices slow down after a year of substantial gains. The S&P/Case-Shiller Home Price Index recently published shows that U.S. single-family home prices only rose .9 percent in the month of June. In May, home prices rose at a rate of one percent.
David Blitzer, chairman of the Index Committee with S&P Dow Jones Indices, says, “Overall, the report shows that housing prices are rising but the pace may be slowing. As we are in the middle of a seasonal buying period, we should expect to see the most gains. With interest rates rising to almost 4.6 percent, home buyers may be discouraged and sharp increases may be dampened.”
Abruptly rising mortgage rates could very well be responsible for the slow down in prices. While it may seem like a bad thing, it’s actually great news. Home prices are still 12.1 percent higher than they were this time last year. The pace that they were increasing was unsustainable and could have easily led us to another housing bubble. Many economists, and homeowners alike, are relieved to see a more practical rate.
What does this mean for homebuyers? It’s simple: there is no better time to buy a new home than right now. This slight pause in rising home prices gives buyers the ideal opportunity to buy a new home – without rushing their decision. Prospective homebuyers can shop around and really consider their new home before they take the plunge.
A home in a Ross Bridge community is the perfect place to consider your next home. You can enjoy the best neighborhood amenities in Alabama; all while knowing you found the best home for the best price. Homebuyers should not shy away from this incredible opportunity!
Source: Forbes Real Estate