Home price growth rose 2% year-over-year, the 135th consecutive month of annual growth, according to a new report from CoreLogic.
CoreLogic’s latest Home Price Index found that April marked the sixth straight month of single-digit gains, which have slowed from an all-time high of nearly 20% annual appreciation in the spring of 2022.
Key highlights:
- On a month-over-month basis, home prices increased by 1.2% compared with March 2023.
- The annual appreciation of attached properties (3.6%) was 2.1 percentage points higher than that of detached properties (1.5%).
- CoreLogic projects that home price growth will slow a bit more in 2023 before regaining steam to about 5% annual appreciation by April 2024. Forecasts show annual home price gains increasing to 4.6% by April 2024.
- Miami posted the highest year-over-year home price increase of the country’s 20 tracked metro areas in April, at 13.2%, while Atlanta ranked second at 4.8%.
- Among states, Indiana and New Jersey recorded the highest annual home price gains, 7.3% and 7.1%, respectively.
- Missouri, South Carolina and Vermont posted the third-highest growth rates, with all showing a 6.9% year-over-year increase.
- Ten states recorded annual losses: Washington (-7.7%), Idaho (-5.9%), Utah (-4.9%), Nevada (-4.5%), California (-3.6%), Arizona (-2.6%), Oregon (-2.6%), Colorado (-2.1%), Montana (-1.1%) and New York (-1.1%).
Major takeaway:
“While mortgage rate volatility continues to cause buyer hesitation, the lack of for-sale homes is putting firm pressure on prices this spring, leading to above-average seasonal monthly gains and a rebound in home prices in most markets,” said CoreLogic Chief Economist Selma Hepp. ”Nevertheless, the recent surge in mortgage rates and continued inflation issues suggest that rates may remain elevated, leading home price appreciation to possibly relax this summer and return to average seasonal gains later in 2023.”
Hepp continued, “Still, while slim inventory is pushing prices up once again and constraining affordability, recent trends suggest that home price growth in 2023 will fall in line with the historical 4% annual average.“
For the full report, click here.
