The rise in home prices has started to cool off, according to a new report.
“The annual home price growth rate fell by more than a full percentage point in May, the largest monthly decline at the national level since 2006,” said Ben Graboske, president of Black Knight Data & Analytics, which conducted the report.
Graboske cautions that house prices aren't necessarily falling; they are just slowing in 97 of the top 100 U.S. markets.
"Overall, home prices still rose 1.5% from April – nearly twice the historical average for the month of May," he said.
The slowdown has resulted in more inventory on the market, which could mean more competition for sellers.
However, it still may not be the best time to buy. With interest rates hovering between 5%-6%, Graboske says home affordability is at its worst point since the mid-1980s.
Tampa, Florida, Raleigh, North Carolina, and Nashville, Tennessee are the markets with the highest home growth rate in the last year. Homes in each of those cities have gone up by at least 30%.
