May 2019 marked the 14th consecutive month of slowing home-price growth, according to a new report from CoreLogic, as U.S. home prices grew by 3.4% that month. Additionally, home prices in Seattle dropped 1.2% over the past 12 months, being the first of the 20 cities in the S&P CoreLogic Case-Shiller Index to lose value since 2012. In this Video Spotlight, CoreLogic Deputy Chief Economist Ralph McLaughlin discusses why housing market observers should ease their concern.
“Despite the cooldown entering its 14th month, observers of the housing market should ease their broader concerns of an imminent housing market correction,” said McLaughlin. “We see the cooldown flattening or even reversing course in the coming months, and expect the housing market to continue coming into balance. In the meantime, buyers are likely claiming some ground from what has been seller’s territory over the past few years. If mortgage rates stay low, wages continue to grow, and inventory picks up, we can expect the U.S. housing market to further stabilize throughout the remainder of the year.”
CoreLogic notes that home price growth in the top 10 metropolitan areas increased by 2.2%, down from the previous month’s 2.3% increase. In addition, 13 of the top 20 metropolitan areas reported lower price increases compared to the previous month, compared to in April, when half of the top 20 saw an increase from the previous month.