Home prices take a summer break
The spring homebuying season wasn't as good as people in the industry had expected. Maybe more buyers will come out this summer and more houses will be on the market for sale.
But for now, home prices seem to be taking a break. That's good news for those planning to buy a home this summer.
Home prices are still growing strongly compared with last year but at a slower pace, according to the latest report by the National Association of Realtors. The median price for previously owned homes was $191,600, up 8.6 percent in the first quarter of this year, compared with the same period last year.
Why price rises might slow
Part of the reason home prices have increased so rapidly in some places is a shortage of homes available for sale, experts say.
"In the New York City area, rents are so high and there's still tremendous demand for buying," Grabel says. "But people are getting stretched already. I don't think that can continue much longer."
Investors and institutional investors also have contributed to higher home prices as first-time homebuyers get squeezed out of the market, Hsieh says.
"We are in an unsustainable recovery," he says.