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By G. Steven Bray
Is the housing market heating up or cooling down? Well, it depends on whom you ask. It also probably depends on where you look.
Last week, we reviewed at a Corelogic report that said home price appreciation is rising again. Today, we’ll look at a Redfin report that says the market is slowing.
According to Redfin, the national housing market has cooled dramatically. The brokerage company says home sellers are four-times less likely to receive multiple offers than a year ago. Only 12% of the offers written by its agents faced competition in Jun.
Redfin says home sales started slipping late last year when mortgage rates rose dramatically. Since then, rates have fallen back, but sales have been slow to recover. The report says properties are staying on the market longer, and more of its seller are having to drop prices than in the last two years.
Redfin reported the most dramatic slowdowns in West Coast markets.
The Case-Shiller price index seems to agree as the national index showed home price appreciation fell again in May. The reading of 3.4% was down a tick from Apr and down about 3 points from a recent peak last year.
While the index shows the pace of appreciation slowing, it’s important to remember that prices still are moving higher. In Case-Shiller’s 20-city composite index, only Seattle home prices were lower than a year ago, and prices there have been rising since Jan. For Dallas, the only TX city in the index, home prices have been rising consistently since the trough of the Great Recession.