http://www.bloomberg.com/news/2014-06-05/home-price-gains-of-20-vanish-as-hottest-markets-cool.html
Home sellers are lowering their expectations as buyer demand cools.
None of the 100 largest U.S. metropolitan areas had increases of more than 20 percent in residential asking prices last month -- the first time in almost two years that’s happened, San Francisco-based Trulia Inc. (TRLA) said in a report today. That compares with seven metro areas, including Las Vegas, Phoenix and California’s Silicon Valley, that had such year-over-year gains in May 2013.
“Big price increases mean there are fewer bargains to be found, and the closer prices get to where they should be, the less prices will rise,” Jed Kolko, chief economist at the property-data provider, said in a telephone interview. “I’d be surprised if we see markets getting back to 20 percent-plus gains. More inventory should be coming onto the market, investor activity is declining and affordability is worsening.”
Nationally, asking prices gained 8 percent last month from a year earlier, the slowest pace in 13 months, amid damped demand from both traditional buyers and investors, Trulia said. Prices in Las Vegas and the California cities of Sacramento and Oakland rose about 15 percent, about half the year-earlier gain.
= new reply since forum marked as read