H
ousing prices may finally be showing signs of slowing down after a long period of rapid growth. According to the S&P CoreLogic Case-Shiller home price index, US home prices dipped slightly from July to August, marking a departure from their all-time high in July. Although prices are still up 4.2% year over year, the rate of increase is decelerating.

    Experts point to three main reasons for this slowdown: an uptick in homes for sale, rising mortgage rates, and promises from presidential candidates to help homebuyers. Mark Eppli, director of the real estate program at the University of Wisconsin-Madison, notes that a sustainable growth in available homes will lead to lower sale prices.

    The slowing price trend is seen as a positive development by some economists, who argue it could help curb inflation and make housing more accessible to individuals. Timothy Savage, who teaches finance at New York University's real estate program, believes the cooling off of house price appreciation is a welcome sign that the Federal Reserve's efforts to combat inflation are working.

    However, in cities like Chicago, which has seen significant house price gains, the slowdown may not be as welcome. Erika Villegas, president of the Chicago Association of Realtors, notes that her market still lacks sufficient listings to meet demand, and hopes declining interest rates will help more buyers find homes soon.