Prices for single-family homes rose by 2% in April from a year earlier, CoreLogic said Tuesday.
That was the 135th straight month of year-over-year growth — or more than 11 years — but it was also the sixth-consecutive month of single-digit gains, according to the CoreLogic Home Price Index for April 2023.
While prices for single-family homes continue to grow, that growth has slowed dramatically since hitting an all-time high of nearly 20% annual growth in the spring of 2022.
Rising prices and volatile mortgage rates are keeping homebuyers on the sidelines, while the continuing inventory deficit could keep pressure on prices over the next 12 months. According to CoreLogic’s HPI forecast, home price growth will slow a bit more in 2023 before regaining steam to about a 5% annual appreciation rate 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 Happ, CoreLogic’s chief economist.
“Nevertheless,” she continued, “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.”
Happ added that, while the lack of inventory is forcing prices higher and affecting housing affordability, “recent trends suggest that home-price growth in 2023 will fall in line with the historical 4% annual average.“
Other Takeaways:
- Home prices (including distressed sales) increased by 2% year-over-year in April 2023. On a month-over-month basis, home prices increased by 1.2% from March.
- In April, the annual appreciation of attached properties (3.6%) was 2.1 percentage points higher than that of detached properties (1.5%).
- CoreLogic forecasts show annual U.S. home price gains increasing to 4.6% by April 2024.
- Miami posted the highest year-over-year home-price increase of the country's 20 tracked metro areas in April, at 13.2%, while Atlanta ranked second at 4.8%.
- Among states, Indiana and New Jersey recorded the highest annual home-price gains, 7.3% and 7.1%, respectively. Missouri, South Carolina, and Vermont posted the third-highest growth rates, with all showing a 6.9% increase year-over-year.
- Ten states recorded year-over-year losses: Washington (-7.7%), Idaho (-5.9%), Utah (-4.9%), Nevada (-4.5%), California (-3.6%), Arizona (-2.6%), Oregon (-2.6%), Colorado (-2.1%), Montana (-1.1%) and New York (-1.1%).
