Data also shows declining home sales across the nation
The average home price across the US increased by just 1.2% in December compared to a year ago, according to a study.
Last month, US home prices climbed to a median of $289,800, according to a housing market analysis from real estate brokerage firm Redfin. The year-over-year increase in home prices was the smallest since the number went positive in March 2012.
While the average price of a home in the US increased slightly, prices actually fell in nine of the 76 largest metro areas Redfin tracks, including San Jose and Boston. The swing in home prices has been especially dramatic in San Jose, which saw year-over-year gains in excess of 20% between November 2017 and June 2018.
Redfin’s data also showed declining home sales across the US, with the number of completed home sales down 10.9% from December 2017. Home sales declined in 69 of the 76 largest metro areas that Redfin tracks.
"December may feel like a foot on the brake, but the housing market was going over the speed limit," said Daryl Fairweather, chief economist at Redfin. "Home prices have been growing faster than wages since 2012, and that can't go on forever. Now that price growth has slowed down and more homes are sitting on the market, buyers will have the upper hand in 2019. Buyers will have more options with more homes for sale, and it will be sellers working to woo buyers into making an offer. And as a bonus, buyers, for the time being, have the benefit of mortgage interest rates that are lower than they were in late 2018, which will make borrowing more affordable."