Home price appreciation will slow significantly by the beginning of next year, thanks to growing inventory and diminishing demand from investors, CoreLogic said in releasing the latest CoreLogic Case-Shiller Indexes.
Home prices were up 10.1 percent year over year in the second quarter of 2013, putting them 16 percent above the housing-crisis trough they hit in the fourth quarter of 2011, according to the indexes.
The CoreLogic Case-Shiller Indexes track prices in 380 U.S. housing markets. (The widely followed S&P/Case-Shiller 20-City Composite Index, released yesterday, only tracks 20 markets.)
But the rapid annual growth of late is projected to decelerate to 5.4 percent by the beginning of 2014, according to CoreLogic.
“Combined with increased housing construction, expected increases in existing inventories should restrain price appreciation even if demand remains strong,” said Dr. Stiff, principal economist for CoreLogic Case-Shiller. ”Nevertheless, the rate of home price growth in the coming months will remain above its long-term average of 4.5 percent annual appreciation since 1975.”