The slight increase in mortgage rates since the beginning of the year appears to have reached a tipping point for demand. At the same time, the supply of homes being put up for sale has increased. This combination of softening demand and more ample supply suggests that house prices will slip back somewhat over the coming months. As a result, we have reduced our forecast for the annual growth rate of house prices in Q4 2024 from 3.0% y/y to 0.5%.
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