Median home prices in the US increased by 4.8% year on year in the third quarter of 2018, the slowest annual rate of growth since the second quarter of 2016, the latest data shows.
This took the average median price to $256,000, up 1% over the past three months with the slowdown in the rate of home price appreciation taking place nationwide, according to the figures from the homes sales report from ATTOM Data Solutions.
In many local markets the slowdown is a rational response to worsening home affordability which has deteriorated at an accelerated pace this year due to rising mortgage rates, Daren Blomquist, senior vice president at ATTOM Data Solutions said.
“Markets not experiencing this price appreciation cooldown may have more of an affordability cushion to work with, but some are in danger of overheating if home price gains continue to run hot,” he added.
The rate of home price growth slowed on an annual basis in 49% or 74 of the 150 metropolitan statistical areas analysed, including Los Angeles, Chicago, Dallas-Fort Worth, Houston and Miami, all of which posted single digit percentage gains in median home prices compared to a year ago.