CoreLogic: Home Price Gains Slow for 4th Month
Fla. posted the highest year-to-year home price gain in Aug. at 26.4%, and overall U.S. prices rose 13.5% – but month-to-month, home price gains dropped by 0.7%
IRVINE, Calif. – CoreLogic’s Home Price Index (HPI) for August 2022 found continued year-to-year gains – up 13.5% in August – but four consecutive month-to-month price declines, down 0.7% in August compared to July.
However, Florida continues to see higher year-to-year price increases, and it led all states in August, up 26.4%. Tennessee ranked second with 20% year-to-year price increases and North Carolina ranked third with 19.9%.
Washington, D.C. ranked last for appreciation at 2.4%.
It’s the lowest year-over-year appreciation recorded since April 2021 and partially reflects continued cooling buyer demand due to higher mortgage rates. The 0.7% month-over-month price decrease also indicates reduced homebuyer enthusiasm, with nearly three-quarters of states posting declines from July.
“The increased cost of homeownership has dampened buyer demand and caused prices to decelerate at a faster pace than initially expected,” says Selma Hepp, interim lead of the Office of the Chief Economist at CoreLogic.
“Housing markets on the West Coast and in the Mountain West, as well as second-home markets, recorded particularly strong price growth in the summer of 2021 but were the first to see month-over-month price declines during the same period this year,” Hepp adds. “While decelerating price growth and price declines benefit younger potential homebuyers, mortgage rates that are approaching 7% may cut many hopefuls out of the picture.”
Other top takeaways in August
- Annual appreciation of detached properties (13.7%) was 0.9 percentage points higher than that of attached properties (12.8%).
- Annual U.S. home price gains are now forecast to slow to 3.2% by August 2023.
- Miami posted the highest year-over-year home price increase of the country’s 20 largest metro areas in August, at 27.1%, while Tampa dropped to No. 2 at 26.9%. It’s not yet clear how Hurricane Ian’s Florida impact will affect the state’s home prices going forward.
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