The steep home price growth trajectory that started in 2020 is now approaching, or may have already reached, an inflection point, said an S&P Global Ratings report published recently.
Key takeaways from the article are as follows:
- U.S. home prices, which have enjoyed unprecedented gains since the start of the pandemic due to economic and behavioral factors, may have reached an inflection point.
- Housing supply remains constrained, though the combination of economic uncertainty and elevated mortgage interest rates appears to be forcing a slowdown in price growth and even price declines in some markets.
- While changes in median home price may offer insight into recent home price trends, this data can be volatile and prone to misinterpretation.
- We believe home price deceleration may pick up steam through year-end, despite the persistent supply-demand imbalance.
For the full report, see “Changing U.S. Home Price Trajectories Signal Cooldown,” published Sept. 15, 2022.
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This report does not constitute a rating action.