Been waiting to buy home to get better value? We have good news for you. According to a recent report, It has been 10 consecutive months now that the Home price appreciation has been going down.
It is being said by expert analysts that, home prices at the national level have fallen by 0.3% from last month. This has led to a drop of price by over $2400 for an average home since last summer.
It has also been analysed, that while on an annual basis, home prices are still up, the slowdown continues throughout the states and which significantly is not being driven by seasonal effects. Falling from a high of 6.8% of annual increase in February last year to 4.6% at the end of year, December was 10th straight month of slowing annual home appreciation.
Home sales are expected to rise due to this slow down as per the report.
For potential home buyers, there is good news in these numbers. With the average interest rates of 30-year fixed rate mortgages, declining by more than half a point over the last 3 months, since early 2018 home buying season housing has become most affordable now. This decline in appreciation and in the interest rates, have increased the purchasing power of an average home buyer by at least 6% while keeping the monthly payment same – or for an average home bought with a 20% down payment, a decrease in $62 a month in monthly payment of principal and interest.