Despite the small cracks seen in the sales of new and used homes as they have weakened in recent months, the prices of those homes are not showing any signs of a slowdown. For June, the most recent month we have for prices, showed an increase of 6.8% year-over-year according to the CoreLogic Home Price Index. That is 14 straight months of increases and this figure indicated an acceleration of prices.
Prices in the San Francisco Bay area (think Silicon Valley) and Southern California were down 9% and 12% respectively year-over-year. The cost of buying a home looks to have played a major part for the decreases as affordability has been pricing out a good portion of the buying public.
The experts are saying the prices will increase about 5% over the next year, due to shortages and a strong economic background.
Of course experts are often wrong.