by Calculated Risk on 8/02/2022 08:00:00 AM
Notes: This CoreLogic House Price Index report is for June. The recent Case-Shiller index release was for May. The CoreLogic HPI is a three-month weighted average and is not seasonally adjusted (NSA).
From CoreLogic: Annual US Home Price Gains Slow for the Second Consecutive Month, CoreLogic Reports
Nationwide, home prices grew by 18.3% from June 2021, marking the 125th consecutive month of year-over-year increases. 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. CoreLogic projects that year-over-year appreciation will drop to 4.3% by June 2023, bringing home price growth close to the long run average from 2010 to 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. “This 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.”
U.S. home prices (including distressed sales) increased 18.3% year over year in June 2022, compared to June 2021. On a month-over-month basis, home prices increased by 0.6% compared to May 2022.
Annual U.S. home price gains are forecast to slow to 4.3% by June 2023.