Home price appreciation slows in 65 percent of U.S. housing markets

infographic-home-sales-rRealtyTrac, the nation’s leading source for comprehensive housing data, released its July 2014 U.S Residential & Foreclosure Sales Report Aug. 28. The report shows that U.S. residential properties, including single family homes, condominiums and townhomes, sold at an estimated annual pace of just over 4.6 million in July, down 3 percent from the previous month and down 12 percent from a year ago — the third consecutive month where annualized sales volume has decreased on a year-over-year basis.

“The Denver housing market experienced its typical end-of-summer lull, however, homes under $300,000 are still moving rapidly, many with multiple offers,” said Phil Shell, managing broker at RE/MAX Alliance, covering the Denver market.  “The overall market is not as frantic as it was during spring of this year but it is still brisk, and pricing is becoming more important when listing a property as the overpriced inventory is sitting for longer periods of time.”

The median price of U.S. residential properties sold in July — including both distressed and non-distressed sales — was $191,000, up 3 percent from the previous month, and up 12 percent from a year ago to the highest level since September 2008, a 70-month high.

“As distressed sales continue to decline, the share of sales is tilting toward more expensive homes, boosting the nationwide median sales price,” said Daren Blomquist, vice president of RealtyTrac. “The nationwide home price increase, however, masks slowing home price appreciation in the majority of housing markets across the country. This slowing appreciation was expected and provides another sign that the real estate recovery thus far is behaving rationally. Still, the housing market is entering a dicey transition phase where it is becoming much more reliant on first-time homebuyers and move-up buyers to sustain the recovery as investor involvement wanes.”

 

Other high-level findings:

Nationally, properties selling in the $200,000-and-below price range accounted for 49 percent of all sales in July, down from 52 percent of all sales a year ago, while properties selling above $200,000 accounted for 51 percent of all sales in July, up from 48 percent of all sales a year ago.

 

States with the biggest annual increase in median sales prices were Michigan (24 percent increase), Ohio (20 percent increase), Virginia (20 percent increase), Minnesota (14 percent increase) and New York (13 percent increase).

 

Metros with the biggest annual increase in median sales price included Detroit (up 33 percent), Dayton, Ohio (up 31 percent), Stockton, Calif., (up 24 percent), Modesto, Calif., (up 22 percent), Cleveland (up 20 percent) and Miami (up 19 percent).

 

Among 183 metropolitan statistical areas with a population of 200,000 or more and with sufficient sales data, 119 (65 percent) saw lower annual home price appreciation in July 2014 compared to July 2013.

 

Markets where annual home price appreciation in July 2014 dropped to single digits from double digits a year ago included San Francisco, San Diego, Los Angeles, Chicago, Portland, Denver and Phoenix.

 

Out of the 183 major markets, 18 (10 percent) reached new median home price peaks in the last two months, including Denver, San Jose, Calif., Columbus, Ohio, Charlotte, N.C., Austin, Texas, Nashville, Tenn. and Oklahoma City.

 

The median price of U.S. distressed sales — properties in the foreclosure process or bank-owned — was $128,000 in July, up 3 percent from the previous month and up 11 percent from a year ago, but still 37 percent below the median price of non-distressed sales: $204,000.

 

About RealtyTrac

RealtyTrac is a leading supplier of U.S. real estate data, with nationwide parcel-level records for more than 129 million U.S. parcels that include property characteristics, tax assessor data, sales and mortgage deed records, Automated Valuation Models and 20 million active and historical default, foreclosure auction and bank-owned properties.