U.S. annual home price growth hit 18% in October, CoreLogic said today, the highest year-over-year growth recorded in the 45-year history of its Home Price Index (HPI).
CoreLogic, a global property information, analytics and data-enabled solutions provider, today released its CoreLogic HPI and HPI Forecast for October 2021.
Despite the record year-over-year growht, monthly price growth has slowed from its April peak and signals a moderation in price growth that the CoreLogic HPI Forecast projects will continue to slow in coming months.
Despite affordability challenges, a recent CoreLogic consumer survey shows that over half of respondents across every age cohort said that owning a home has always been a goal — further supporting the outlook that consumer desire for homeownership remains.
More than 3,000 consumers were surveyed by CoreLogic via Qualtrics. The study is an annual pulse of U.S. housing market dynamics concentrated on consumers looking to purchase a home, consumers not looking to purchase a home, and current mortgage holder. The survey was conducted in April 2021 and has a sampling error of +/- 3%.
“New household formation, investor purchases, and pandemic-related factors driving demand for the limited supply of available for-sale homes continues to propel the upward spiral of U.S. home prices,” said Frank Martell, president and CEO of CoreLogic. “However, we expect home price growth to moderate over the near term as many buyers take a break for the holidays.”
Other highlights:
- Nationally, home prices increased 18% in October 2021, compared to October 2020. On a month-over-month basis, however, home prices increased 1.3% vs. September 2021.
- In October, appreciation of detached properties (19.5%) was 6.6 percentage points higher than that of attached properties (12.9%).
- Home price gains are projected to slow to a 2.5% annual increase by October 2022, as affordability and economic concerns deter some potential buyers and additional for-sale inventory becomes available.
- In October, home prices continued to rise sharply in Twin Falls, Idaho, which logged the highest year-over-year increase at 35.8%. For the first time in 2021, Florida made it to the top of the list for home price gains, with Naples logging the second-highest ranking at a 33.5% year-over-year increase.
- At the state level, the Mountain West continued to dominate the top spots, with Arizona and Idaho again leading the way with the strongest price growth at 28.8% and 28.7%, respectively; Utah ranked third at 24.5%.
“Single-family detached houses remain the preferred home for buyers during the pandemic,” said Frank Nothaft, PhD., chief economist at CoreLogic. “This is reflected in the 19.5% annual price rise for detached houses, which marks another record-high for the CoreLogic Home Price Index.”
