Property Prices Slowing in the US in January
US property prices started to slow their level of growth throughout January, as the predictions from experts that they will reach a point of affordability in 2014 started to somewhat come to fruition. With prices rising substantially throughout 2013, a report last week from Zillow showed that experts are predicting to see growth of just 4.5 per cent this year as the market stabilises and matures rather than heading towards another property bubble.
And now according to Zillow, this has come to be something of a reality, with its report for the first month of the year showing a much subdued rate of appreciation when compared to the past 12 months. In January, the Zillow report shows that price increases sat at 0.2 per cent. It said in the findings that this was the slowest rate of growth on a monthly basis since May 2012.
The main reason for the slowing in price increases has been the fact that one of the most problematic issues of the last year has now been addressed. Throughout 2013, the fast rises were often attributed to the fact there were very few homes for sale on the market. However, this was rectified somewhat in January, with Zillow reporting an 11.1 per cent rise nationwide in the number of homes listed. It was the fifth month in a row that there had been a monthly increase in the year-on-year number of properties for sale.
"Last year, tight inventory contributed to very rapid home value appreciation. Now, more inventory is helping to moderate home value increases in many areas. This increased supply is coming from many sources, as more sellers are free to list their homes after being released from negative equity, builders continue to ramp up construction and many home owners decide to list their homes and capitalise on recent gains," said Zillow chief executive Stan Humphries. He added that as the year starts to pass and winter turns to spring, the number of buyers and sellers should both continue to improve to make sure that the market remains strong yet sustainable for the whole of 2014.