“Softening price growth in April has dropped us below the long-run average,” Walden said in the report. “We’ve seen the rate of appreciation slow on an adjusted level as well, suggesting annual growth will likely continue to slow in coming months.”
The Mortgage Monitor report indicated that if adjusted monthly gains continue at the current pace of 0.28% per month, the annual growth rate could fall below 4.25% in June, with year-over-year gains dropping to less than 4% by July. Despite this, both supply and demand remain constrained in the housing market, and interest rate movements can significantly impact prices.
The number of homes for sale nationwide increased by 30% year over year in April. This improvement is particularly noticeable in Florida and Texas, where 13 of the largest markets have seen inventory return to pre-pandemic levels.
However, inventory deficits persisted in many northeastern and midwestern markets, keeping upward pressure on home prices in those areas.
Read next: Mortgage rates rise for the first time in a month
