U.S. homebuyers may find it easier to buy homes based on their price range, as property prices may have stabilized in July, according to Black Knight Financial Services’ index.
The group’s national Home Price Index showed that U.S. home prices in July increased only 0.5% from a 0.9% growth in June. On an annual basis, home values in July rose 6.2%, which is the same year-over-year increase in June.
Since the start of 2017, the index recorded a 5.9% increase amounting to $281,000. While prices may still seem high, Black Knight Financial Services said that the rate of property appreciation has steadily declined after peaking at 1.3% in March.
From January to July, the index only posted an average monthly increase of 0.84% nationwide. For this reason, homebuyers should find the best mortgage rate in Utah from lenders such as Altius Mortgage Group and in New York.
The latter state posted the highest monthly appreciation with a 1.8% increase in prices, while the former recorded a 1% gain. A steady drop in home prices may eventually lead to tighter competition among buyers, so it might be best to start filing a loan application as early as now.
Aside from Utah and New York, other states such as Rhode Island and Montana posted a 1.2% increase in home prices in July. The market in San Jose, California, may be the most expensive locality as average home prices have reached more than $1 million.
On the other hand, the sole price drop among the 20 largest states took place in Virginia, where the index recorded a nominal decline of 0.2%. In Delaware, prices also fell 0.1%. These two states could have attracted more buyers due to generally cheaper home values.
Home price growth in the U.S. may have indicated a slowdown in recent months, which could be a good time for buyers to take advantage of the trend.