The U.S. housing market is experiencing a noticeable slowdown in home price growth, according to CoreLogic’s latest report for August 2024. Nationally, home prices have increased by 4.7% over the past year, but the month-over-month growth from May to June was just 0.3%. This is less than half the pre-pandemic average increase of 0.8% for the same period. Several factors contribute to this cooling trend. Elevated mortgage rates have significantly impacted affordability, causing many potential buyers to delay purchases. Although the Federal Reserve is anticipated to cut rates as early as September, which might ease some financial pressures, high-interest rates are still dampening market enthusiasm. Additionally, several markets, particularly in the South, are witnessing inventory increases, further putting downward pressure on prices. Despite these challenges, CoreLogic predicts that home prices will continue to grow, albeit at a slower rate. The forecast suggests a modest 2.3% increase from June 2024 to June 2025, indicating a more cautious outlook for the housing market. Certain regions, such as Miami, continue to experience robust growth, with a 10% year-over-year gain. However, many areas may see stagnation or slight declines as the market adjusts to changing economic conditions. Overall, while the U.S. housing market is not in decline, it is undoubtedly entering a phase of slower growth, with buyers and sellers needing to adjust their expectations accordingly. For more detailed insights, you can check out CoreLogic’s full report here. This shifting landscape suggests a market in transition, with both opportunities and challenges ahead for those navigating the real estate market.