It looks like 2019 could be a buyer's market in real estate, but that's not necessarily a good sign for the economy.
Home prices, while still higher than a year ago, are pulling back in most major markets, according to a report released Wednesday. Values in November were 5.1 percent higher compared with November 2017, CoreLogic said. That is down from the 5.4 percent annual gain seen in October. CoreLogic is now projecting a smaller, 4.8 percent gain in November 2019.
The decline in asking prices comes as sellers face a new reality of higher interest rates and affordability worries among potential buyers.
"The rise in mortgage rates has dampened buyer demand and slowed home-price growth," said Frank Nothaft, chief economist at CoreLogic. "Interest rates for new 30-year fixed-rate loans averaged 4.9 percent during November, the highest monthly average since February 2011. These higher rates and home prices have reduced buyer affordability."