T
he US housing market is experiencing a slowdown due to a combination of factors, including overinflated home prices, high mortgage rates, and rising inventory. According to ICE, a mortgage technology firm, annual home price growth in June was 1.3%, down from 1.6% in May and the lowest rate in two years. Nearly one-third of the top 100 markets are now seeing annual price declines of at least 1%. Single-family home prices rose 1.6%, while condo prices fell 1.4% nationally.

    Inventory has been increasing steadily, up 29% in June compared to last year, but the pace of growth is slowing. The average 30-year fixed mortgage rate remains high, hovering around 6%, double what it was during the early days of the pandemic. This has created a challenging environment for homebuyers and sellers.

    Regional price trends are diverging, with gains in the Northeast and Midwest offset by declines in the South and West. Cape Coral, Florida, saw the largest decline, with prices down over 9%, followed by Austin, Texas, and Tampa, Florida. Seven of California's major markets are also experiencing price drops.