While it’s not universal to every market — and prices are still rising — the rate of annual year-over-year price appreciation nationwide for homes has slowed for the fifth consecutive quarter, according to ATTOM Data Solutions.
Nationally, the median price of single-family houses and condos rose 6.3 percent, to $255,000, in the second quarter of 2018 compared with the second quarter of 2017, according to the Irvine, Calif.-based data firm. While that sales price is the highest in ATTOM’s data, the rate of acceleration was the slowest since the second quarter of 2016.
However, as with all real estate, the important information for buyers and sellers is what’s happening in their local market.
While the rate of appreciation slowed from the first quarter of 2018 to the second quarter in 80 of the 122 housing markets covered by the report, annual home price appreciation accelerated from the first quarter to the second quarter in 42 markets, including New York, Boston, San Francisco, Detroit and Washington.
Buyers focus on price appreciation because of its impact on affordability. Meanwhile, homeowners pay attention to the statistics because they impact home equity, which is the difference between what they owe and the value of their property.
Approximately 10 percent of U.S. properties with a mortgage are seriously underwater, which means the combined amount they owe on the property is more than 25 percent higher than the property’s estimated value.
On the flip side, 24.5 percent of all U.S. properties with a mortgage are considered “equity rich,” which means that the combined balance of loans on the property is 50 percent or less of the property’s estimated market value.
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