Yearly price growth in the U.S. real estate market has seen its double-digit gains come to a halt.
The shaky housing market saw historic price increases for at least two years. Now annual price growth has dropped back into the single digits, which began in October after historic rate hikes by the U.S. Federal Reserve saw mortgage rates jump to historic highs, above 7%.
The goal by the Fed has been to slow demand, while trying not to spark a recession.
Danielle Hale, Realtor.com’s chief economist, said, “Housing data in the first full week of December showed further pull back in housing market activity from both buyers and sellers.”
She said, “Whether holiday cheer or a still-dismal view of current housing market conditions is the bigger driver of the pullback is an open question, but the result is that housing market balance tipped a bit further in favor of buyers,” Mansion Global reported.