Home-price growth in the U.S. started to slow in April.
A national measure of prices climbed 20.4%, down from the
Mortgage rates have nearly doubled since the end of 2021. The run-up in rates, combined with high prices, are squeezing potential buyers and starting to
A measure of prices in 20 US cities climbed 21.2% in April following a 21.1% gain in March, according to the index. Tampa, Florida; Miami and Phoenix had the biggest gains.
“Mortgage financing has become more expensive as the Federal Reserve ratchets up interest rates, a process that had only just begun when April data were gathered,” Lazzara said in a statement. “A more challenging macroeconomic environment may not support extraordinary home price growth for much longer.”
The housing market slowdown is having ripple effects across the industry. Mortgage lenders are forecasting a slump in business and brokerages including Compass Inc. and Redfin Corp. are
The inventory of houses for sale was tight during the pandemic boom as homes quickly flew off the market. While more owners are listing properties, there were still fewer homes on the
In recent months, price growth had accelerated broadly across the 20 cities in the index. But April’s data showed that only nine cities continued to see price gains quicken. Five of those cities — including Atlanta, Dallas and Charlotte, North Carolina —are in southern states.
The index, which accounts for more than 27 years of data, is an important gauge of the health of the US housing market, in part due to its breadth of measurements around the country.