Home price growth slows
Research into home price growth shows at an annual rate of 1.51%. This is a staggering difference from the 6.5% rate in 2024. Additionally, it about half the rate of inflation. The National Association of Homebuilders (NAHB) and the S&P Cotality Case-Shiller Home Price Index, home price growth in August is the slowest in two years. “On a monthly basis, the index posted a modest increase from July, following five consecutive months of decline.” said NAHB manager of Economic Services Onnah Dereski.
Growth allows for builders to have increased profit margins and strengthen the demand for new builds. During the softer levels of growth, builders can incentivise clients by offering lower interest rate buydowns or providing upgrades. Despite this, 7 metro areas exhibited growth higher the national rate of 1.51%. New York City saw the highest annual rate at 6.08%. Chicago closely at 5.89%. However, two Florida hubs declined, with Tampa falling by -3.34% and Miami down -1.69%.
