The latest Home Price Index [1] (HPI) from CoreLogic [2] 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 [3], 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.”
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%.
