Home Prices Show Signs Of Topping Out
Dated: January 28 2014
The housing recovery was one of the stronger aspects of the economy last year, boosting household wealth and home construction. But with mortgage rates climbing steadily since hitting record lows in May, it's clear the housing recovery is starting to lose some steam. "While housing will make further contributions to the economy in 2014, the pace of price gains is likely to slow during the year," said David Blitzer, chairman of the index committee at S&P Dow Jones Indices. Calculator: How much house can you afford? But housing experts say that more modest price increases are probably a good thing for the housing market. The rapid increases of the last year are not sustainable, they said. "Sellers used to seeing huge price gains month after month may feel some whiplash as that slows down," said Stan Humphries, chief economist for sales tracker Zillow. But more modest price increases mean "the housing market is still a long way from normal, but it's getting there."