A slowdown has hit the housing market when it comes to home prices.
Though home prices, according to Zillow, were up 6.4 percent year over year in the third quarter and up 1.2 percent from the end of the second quarter – the pace is slowing down.
In the first quarter, home values rose nationally by one quarter of one percent but in the second quarter they jumped 2.4 percent. That growth was halved in the third quarter with prices remaining unchanged from August to September.
But that’s a good thing. Zillow’s chief economist says if home values had continued to rise, we could have been headed into another bubble cycle which nobody wants. He suggests that the market recovery is moving into a more sustainable level.
The slowdown will actually help some communities that were starting to see a new housing bubble form. In California for example, after modest losses during the crash, the booming gains were threatening to make homes unaffordable to anyone but wealthy buyers.
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