Home Prices Continue to Fall

If you’ve been biding your time waiting for the housing market to cool, we’ve got good news for you — your patience might have paid off. According to a recent report, yearly home-price appreciation has slowed for the third month in a row.

The report found that home annual home-price appreciation slowed to 15.8 percent in July, down from 18.3 percent in June. Not only that, but home prices fell by 0.3 percent during that same time period. As Marketwatch reports, that’s the first time home prices declined month-to-month since late 2018. The study’s authors also forecasted that appreciation will likely settle at around four percent by this time next year. A separate report also found that over the next year, home appreciation is likely to fall to about 1.4 percent. The decrease in housing value is a good thing for buyers who have been waiting around for things to settle.

With the housing market cooling, it could be the right time to strike. Before you start shopping around, make sure your credit score is as high as possible. Pay down debts and check your credit report for any inaccuracies. The higher your score, the more favorable mortgage rate offers you’ll receive. Use a housing calculator to see how much home you can afford. A good rule of thumb? Your housing expenses — mortgage, taxes and insurance — should be no more than 28 percent of your monthly gross income. When you do start applying for mortgages, get at least three offers to see the best rates available. Happy hunting!

Have more questions? Register to attend our free Homebuyer Educational Seminar on October 20!

Adapted from an article distributed in partnership with SavvyMoney with reporting by Chris O'Shea