CoreLogic's Home Price Index (HPI) for January represented its highest 12-month rent growth since the series began in 1976.
National home prices increased 19.1% year over year in January 2022, according to the report. The January 2022 HPI gain was up from the January 2021 gain of 9.4%.
While home price growth is expected to slow over the next 12 months, the CoreLogic HPI Forecast shows that the year-over-year change in the HPI will remain in the double digits for at least the first seven months of 2022.
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HPI Growth Remains High in All Four Price Tiers
CoreLogic analyzes four individual home-price tiers that are calculated relative to the median national home sale price. Home price growth remained at a high level for all four price tiers in January. The lowest price tier increased 20.6% year over year in January 2022, compared with 19.8% for the low- to middle-price tier, 20% for the middle- to moderate-price tier and 19.7% for the high-price tier.
CoreLogic also provides the HPI separately for detached — or freestanding — properties and attached -properties (such as condos or townhouses). Appreciation for detached properties (20.3%) was 1.3 times that of attached properties (15.2%) in January.
The gap in HPI growth between detached and attached properties widened after the pandemic began as remote work allowed employees to buy homes further from their office and in areas where property prices and population density are lower and detached housing is more common. This gap has narrowed since the spring of 2021 and in January was the smallest in 13 months.
Arizona, Florida Top State-Level Results
The year-over-year HPI growth in January 2022 for the five highest- and lowest-appreciating states. was strongest in Arizona, with an appreciation of 28.3%, followed by Florida (+27.9%) and Utah (+25.2%). At the low end, Washington, D.C., saw home prices increase 3.8%, and home prices in Alaska increased 7.4%. Population growth in some states added to home buying demand in 2021, pushing up home prices. Arizona, Florida, Utah and Nevada were all in the top 10 for percentage increase in population growth in 2021.
The surge in home price appreciation was felt across the country, with most states showing higher appreciation in January 2022 than in January 2021. Florida had the biggest acceleration in home price growth from January 2021 (+8.8%) to January 2022 (+27.9%). Washington, D.C., Connecticut, Maine and Alaska saw a slowdown in annual appreciation.
Despite a low supply of properties for sale and rising home prices, US homebuyers remained enthusiastic in January 2022, with more expecting to buy over the next six months as appreciation is forecast to slow.
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