17
HOME PRICES
RECORD 125
STRAIGHT MONTHS
OF GROWTH
e latest Home Price Index (HPI)
from CoreLogic covering June 2022 set a
new milestone: it has now seen a record 125
consecutive months of year-over-year increases
as home prices grew by 18.3% from June 2021.
According to CoreLogic, though annual
appreciation was still strong, it slowed from
the previous month for the second consecutive
month, reflecting reduced buyer demand in
part due to higher mortgage rates and worries
about a slowing economy.
Looking into the future, CoreLogic
predicts that year-over-year home price
appreciation will drop to 4.3% by June
2023, bringing home price growth closer to
historical averages recorded between 2010-
2020.
"Signs of a broader slowdown in the
housing market are evident, as home price
growth decelerated for the second consecutive
month," said Selma Hepp, Interim Lead of the
Office of the Chief Economist at CoreLogic.
"is is in line with our previous expectations
and given the notable cooling of buyer
demand due to higher mortgage rates and the
resulting increased cost of homeownership.
Nevertheless, buyers remain interested, which
is keeping the
market competitive
— particularly for
attractive homes
that are properly
priced."
Other top
takeaways from the
report include:
» In June, annual
appreciation
of detached
properties
(18.7%) was
2.1 percentage
points higher
than that of
attached properties (16.6%).
» Annual U.S. home price gains are forecast
to slow to 4.3% by June 2023.
» Once again, Tampa, Florida logged the
highest year-over-year home price increase
of the country's 20 largest metro areas in
June, at 32.6%, while Phoenix retained
the second slot at 26.1%. Following the
nationwide trend, both metros saw annual
home price gains slow from May.
» Florida and Tennessee posted the highest
home price gains, 31.8% and 25.8%
respectively. Arizona ranked third with a
24.9% year-over-year increase. Washington,
D.C. ranked last for appreciation at 3.4%.
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