While many hot spots across the U.S. saw strong home price increases, a few cities saw home prices grow at the slowest pace since 2015, according to a recent report. 20 U.S. cities suffered slow home price growth and experts are pointing towards affordability for buyers as the main reason behind the ease.
"The S&P CoreLogic Case-Shiller index of property values increased 4.7% from a year earlier, down from 5% in the prior month, and below the median estimate of economists, data showed Tuesday. Nationally, home-price gains slowed to a 5.2% pace," according to NationalMortgageNews.
As mortgage rates increased in 2018, buyers who were already struggling with affordability began backing out of the market. Though, experts still believe that a market crash is out of the question, thanks to "tax cuts, rising wages and general economic growth."
"In early 2019, falling mortgage rates, slower price gains and an expanding supply of homes may attract more buyers," according to NMN.
"The seasonally adjusted 20-city index advanced 0.3% from the prior month, also below the 0.4% median estimate of analysts."
In fact, the report revealed that applications for home-purchase loans have increased this year with a dip in mortgage rates.
To learn more about the slow in home price increases for some cities in the U.S., click on the image above.