You might want to help your sellers AND buyers reign in their expectations about automatic home price appreciation now. According to ATTOM Data Solutions, Q2 2018 US Home Sales Report, home price appreciation in 66% (80 of 122) of all metros analyzed for median home prices have slowed to the lowest rate in 2 years.
This is not to say that home price appreciation has slowed throughout the country. No…just in 66% of it. Market segments in such places as Detroit, Boston, San Francisco, New York and Washington DC are still rising…perhaps not as quickly as they were but still rising.
Take a look at price per square footage appreciation acceleration rates. In homes selling for +$1M, values appreciated +5.4% from Q2 2017 but -3.2% from Q1 2018. In homes selling for -$1M, values increased +6.5% from all of 2017 but -8.2% from Q1 2018 and -9.0% from Q2 2017.
Appreciation decelerated in 17 or 49 counties in Q2 2018 by an eye-popping -39%. Some of those counties include Los Angeles, Miami Dade, Manhattan, Maricopa (Phoenix) and Marin (Mill Valley, Tiburon, Corte Madera). Appreciation accelerated in top priced counties such as San Jose, San Francisco, San Diego, Seattle, Orange and Alameda Counties.
Markets with the fastest rates of home price appreciation include:
- San Jose – +25%
- Flint, MI – +23.7%
- Seattle – +14.3%
- Boise, ID – +14.3%
- San Francisco – +14.2%
Markets that have yet to reach pre-recession median home price peaks of $241,648 in Q3 2005 include:
- Atlanta – -36% below peak ricing
- York, PN – -34%
- Salisbury, MD – -21%
- Naples, FL – -19%
- Trenton, NJ – -18%
As always, housing market news is mixed. According to Daren Blomquist, vice president of ATTOM Data Solutions, “Annual home price appreciation nationwide has now slowed for the 5th consecutive quarter following a post-election spike to double-digit appreciation in Q1 2017. Although home sellers are still in the driver’s seat of this housing market, moderating home price appreciation is good news for prospective buyers…and signals that rising mortgage interest rates and other housing headwinds are cooling the red hot home price appreciation in some areas.”