CoreLogic’s May Home Price Insights report revealed that home prices nationwide, including distressed sales, increased 20% in May 2022 from a year earlier. No states posted an annual decline in home prices.
On a month-over-month basis, home prices increased 1.8% in May from April. The CoreLogic HPI Forecast predicts that home prices will increase on a month-over-month basis by 1% from May to June, and on a year-over-year basis by 5% from May 2022 to May 2023.
Though U.S. home-price growth relaxed slightly in May from April, it remained in double digits year over year for the 16th consecutive month. As in past months, all states and Washington, D.C., posted annual appreciation, with 13 states posting gains of more than 20%.
“Slowing home price growth reflects the dampening consequence of higher mortgage rates on housing demand, which was the intention," said Selma Hepp, chief economist at CoreLogic. "With monthly mortgage expenses up about 50% from only a few months ago, fewer buyers are now competing for continually limited inventory.
"And while annual home price growth still exceeds 20%," Hepp continued, "we expect to see a rapid deceleration in the rate of growth over the coming year. Nevertheless, the normalization of overheated buying conditions should bring about more of a balance between buyers and sellers and a healthier overall housing market.”
Other takeaways:
- Large cities continued to experience price increases in April, with Phoenix on top at 28.7% year over year.
- The CoreLogic Market Risk Indicator (MRI) predicts that Bremerton-Silverdale, Wash., is at very high risk (70%-plus probability) of a decline in home prices over the next 12 months.
