More listings but fewer sales are adding up to weaker home price gains this summer.
It was bound to happen after prices soared in 2013, well past the rate of employment or wage growth. Existing home sales, including those for single family houses and condominiums, fell 4.5 percent in the second quarter of this year from the same period in 2013, according to the National Association of Realtors. Home prices are slowly following suit.
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"National median home prices began their most recent rise during the first quarter of 2012 but had climbed to unsustainable levels given the current pace of inflation and wage growth," Realtors chief economist Lawrence Yun said.
The median existing home price increased 4.4 percent in the second quarter year over year to $212,400, but that is a significantly smaller gain than the 8.3 percent annual jump seen in the first quarter. This is likely because the number of listings for sale nationally rose 6.5 percent from a year ago. The number of local markets with double-digit annual price gains fell to 19 from 37 in the last quarter.