“The market today is in a good position from the perspective of the Fed and its mission,” Walden noted. “Slower home growth is a positive sign in the Fed’s fight against inflation and increased – but still mild – demand is good for the market and Fed alike. And of course, in some slightly good news for homebuyers, affordability has improved measurably from recent historic peaks.”
While prices ticked up 0.19% nationally from June, they fell by 0.25% or more across Florida’s nine largest metro areas, with Cape Coral seeing a 1% decline. Other Florida cities, such as North Port and Jacksonville, also posted notable price drops.
In contrast, the Midwest and Northeast regions are experiencing persistent inventory shortages, which continue to push prices higher. Cleveland, Providence, Richmond, and Chicago were among the top performers in terms of home price growth in July.
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“However, recent inventory gains come much more from softer demand than from an increased willingness among homeowners to list their homes for sale,” said Walden. “This makes supply – and its follow-on effect on home prices – sensitive to rate changes, making demand worth watching closely.