CoreLogic Forecast Home Price Growth to Slow to 4.3% in a Year
Prices keep rising, but at a much slower pace, with Washington, D.C., the weakest of top markets.
Home prices keep on growing, but that growth also keeps on slowing, according to a report this week from CoreLogic based on June numbers.
Nationwide, home prices grew by 18.3% from June 2021, marking the 125th consecutive month of year-over-year increases and second in a row where that rate slowed.
CoreLogic projects prices will keep their foot on the brake for the next 12 months, and forecasts that by June 2023, year-over-year appreciation will drop to 4.3%, close to the average seen from 2010 to 2020.
Selma Hepp, interim lead of the office of the chief economist at CoreLogic, said in prepared remarks that signs of a broader slowdown in the housing market are evident.
“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,” Hepp said. “Nevertheless, buyers remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced.”
Tampa, Phoenix Strongest; Washington, D.C., Weakest
The highest year-over-year growth was logged by Tampa at 32.6% with Phoenix holding onto the No. 2 slot at 26.1%. However, like most others, both metros saw annual home price gains slow from May. Washington, D.C. ranked last for appreciation at 3.4%.