Nationwide year-over-year home prices rose 2 percent in April, the 135th consecutive month of annual growth but the sixth straight month of single-digit gains, according to the recently released CoreLogic Home Price Index. CoreLogic, an Irvine, California-based global property information, analytics and data-enabled solutions provider, said home prices are slowing significantly from an all-time high of nearly 20 percent annual appreciation in the spring of 2022.
CoreLogic said numerous economic concerns are contributing to buyer reluctance, including mortgage rate volatility and the related uncertainty surrounding the recent debt-ceiling debate. That said, a continued shortage of homes for sale could keep pressure on housing prices over the next 12 months. CoreLogic projects that home price growth will slow a bit more in 2023 before regaining steam to about 5 percent annual appreciation by April 2024.
“While mortgage rate volatility continues to cause buyer hesitation, the lack of for-sale homes is putting firm pressure on prices this spring, leading to above-average seasonal monthly gains and a rebound in home prices in most markets,” said Selma Hepp, CoreLogic chief economist. “Nevertheless, the recent surge in mortgage rates and continued inflation issues suggest that rates may remain elevated, leading home price appreciation to possibly relax this summer and return to average seasonal gains later in 2023.”
“Still, while slim inventory is pushing prices up once again and constraining affordability,” Hepp continued, “recent trends suggest that home price growth in 2023 will fall in line with the historical 4 percent annual average.”
Miami posted the highest year-over-year home price increase in the country in April at 13.2 percent, while Atlanta ranked second at 4.8 percent. Utah, with a year-over-year home-price drop of 4.9 percent, was among nine western states where sale prices fell from the previous year.