The San Jose Mercury News reports that home prices int he United States rose by the smaller year-over-year amount in 20 months – 7.5 percent in June 2014 compared with June 2013. While 7.5 percent is significant it is less than the 8.3 price increase in May and considerably less than the peak of 11.9 percent registered in February of this year.
Meanwhile, sales of existing home decreased in the second half of 2013 and have seen a moderate recovery during 2014 with a seasonably adjusted rate of 5.04 in June, the third straight monthly increase but still 2.3 percent fewer than the 2013 pace.
According to industry analysts the slowing rate of price gains should make purchasing a house more affordable. Last year’s price increases were drastic; this, along with rising mortgage rates, left many would-buyers -particularly younger or first-time buyers – unable to afford to buy.
Morevoer, although the housing inventory remains relatively tight more homes have been made available for sale, increasing by 6.5 percent over June 2013.