U.S. home price growth continued to relax on a year-over-year basis in September, posting an 11.4% increase, as found by a new report from CoreLogic released this week.
According to CoreLogic’s Home Price Index, home prices declined by 0.5% on a month-over-month basis in September, and two-thirds of U.S. metro areas posted at least a slight month-over month price decline.
Key highlights:
- Annual appreciation of detached properties (11.5%) was 0.4 percentage points higher than that of attached properties (11.1%).
- Annual U.S. home price gains are forecast to slow to 3.9% by September 2023.
- Miami posted the highest year-over-year home price increase of the country’s 20 largest metro areas in September, at 25.6%, while Tampa, Florida remained in the No. 2 slot at 23.2%.
- Florida and South Carolina posted the highest home price gains, 23% and 17.6%, respectively.
- Tennessee ranked third with a 17.4% year-over-year increase. Washington, D.C. ranked last for appreciation at 1.8%.
- CoreLogic expects annual U.S. home price growth to continue to slow over the next 12 months to 3.9% by September 2023.
Major takeaway:
As in previous months, Southeastern states put up significantly higher price gains than the national growth rate, with Florida again leading the country for the eighth consecutive month. Although rising mortgage rates continue to dampen housing demand nationwide, out-migration from more expensive states on the West Coast and in the Northeast is likely fueling homebuyer enthusiasm for properties in relatively more affordable Southeastern states.
“The rapid increase in prices during the COVID-19 pandemic caused many U.S. housing markets to reach completely unaffordable levels for potential local homebuyers,” said Selma Hepp, interim lead of the Office of the Chief Economist at CoreLogic. “On the West Coast and in Mountain-West states, home prices are slowing from this spring’s high but remain elevated from a year ago. By contrast, markets that continue to see an in-migration of higher-income households are still experiencing home price gains that are notably higher than the national rate of appreciation.”
For the full report, click here.
