While annual nationwide home price growth remained near an 11-year low in June at 1.6 percent, the gain was slightly higher than in May, indicating that the recent slide in home price increase may be bottoming out, according to CoreLogic. The number were released recently by the Irvine, California-based real estate information and analytics provider in its CoreLogic Home Price Index and HPI Forecast reports for June.
CoreLogic said it expects year-over-year U.S. home price appreciation to pick up for the rest of 2023 and reach about 7 percent by early 2024.
Ten states and the District of Columbia posted annual home price declines in June, with some of the largest losses again recorded in the Northwest. However, since western states are still grappling with a lack of homes for sale, prices in that region are likely to remain elevated over the long term.
“While the continued imbalance between buyers and sellers continues to pressure home prices, June’s annual bump in price growth echoes economic resiliency, a thriving U.S. job market and strong consumer spending,” said Selma Hepp, chief economist for CoreLogic. “And while higher mortgage rates are impacting affordability for buyers with loans, almost four in 10 sales are all-cash transactions. Also, most baby boomer homeowners have substantial equity, which could be putting pressure on prices in markets where that generation is currently migrating.”
Miami again posted the highest year-over-year home price increase of the country’s 20 tracked metro areas in June, at 8.9 percent. Detroit saw the next-highest gain (4.2 percent), followed by Atlanta (3.9 percent).
Among states, New Jersey ranked first for annual appreciation in June (up by 6.9 percent), followed by New Hampshire and Vermont (both up by 6.4 percent). Idaho led all states in home price loss at minus-8 percent.