Regional variations are also becoming more pronounced. New York posted a 7% annual increase in home prices, while Tampa and San Francisco saw declines of 2.4% and 2%, respectively.
Mark Zandi, chief economist at Moody’s Analytics, noted that stagnant prices, combined with modest inventory growth, are beginning to act as a drag on broader economic momentum.
“National house prices have effectively gone sideways so far this year. This means house prices are falling in about half the nation’s housing markets, mostly in the South and western US,” said Zandi.
Looking ahead, market watchers are focused on the Federal Reserve’s Sept. 17 meeting. NBC News noted that while a potential rate cut could pressure lenders to lower borrowing costs, experts caution that mortgage rates may not fall immediately. This uncertainty could keep both buyers and sellers on the sidelines, prolonging the market’s sluggish performance through the fall months.