The housing prices in the U.S. rose at a slightly slower pace in the 12 months ended in March, a sign that weak sales have begun to curb sharp price gains in the housing market in the country.
Data provided by CoreLogic indicate that prices rose 11.1% in March compared with March 2013. Though this is a large increase, the increase is down from 12.2% in February compared to the same period in above.
Behaviorally month, prices were up 1.4% in March compared to February. But figures from CoreLogic month are not adjusted for seasonal patterns, as warmer spring weather.
Housing sales and construction have faltered since last fall, slowing the pace of the economy. A harsh winter, increased acquisition cost and limited supply of housing available muyos have discouraged potential buyers. The existing home sales in March reached their lowest level in 20 months.
Some indications point to a slight increase in sales as the season progresses spring. Signing contracts to buy homes increased in March I, for the first time in nine months, said last week the National Association of Realtors week.
However, economists forecast that sales of existing homes will increase slightly this year compared to 5.1 million in 2013. Slow sales, in turn, decrease the annual price increase to only 5% or 6% , economists predict. CoreLogic predicts that prices will rise just 6.7% in the 12 months that will end in March.
High prices usually encourage some homeowners to sell, however, the number of homes on the market remains low. Mark Fleming, chief economist for CoreLogic, said many owners may be reluctant to sell because they have low mortgage rates and hesitate to buy a home with a higher mortgage rate.