Appreciation is dropping, will home values follow?

Did we peak in February? Both average and median price growth slowed in April. Looking back, month-over-month median price growth started out flat in January, yet low inventory and strong pending home sales provided a strong close-to-list of 102%. (meaning the average buyer was paying 2% over asking) In February, prices rose a strong 6.5% in one month, as active listings stayed depressingly low, pushing close-to-list up to 105%.

March saw a swell of much-needed inventory if you can call 6,020 newly listed homes a swell, giving buyers a few more choices but no extra days. Days on market stayed at 4; while the close-to-list increased to 106.5% even while median home prices softened to a 4.8% month over month increase. April’s data reflected a slowing median home price growth again as it increased only 3.81% from last month with almost 7,000 homes hitting the market, yet the close-to-list continued to increase to 107%.