CoreLogic's Home Price Index also shared its predictions for July 2022 and expects home price gains to slow to a 2.7% increase. Meanwhile, the 18% increase in the HPI was the largest 12-month growth reported since the company began tracking it in January 1976.
In a recent consumer survey conducted by CoreLogic, the company revealed that on average, 65.8% of respondents across all age groups prefer standalone properties compared to other property types. The company also estimates that the single-family market will be undersupplied by 4.35 million units by 2022.
“Home price appreciation continues to escalate as millennials entering their prime homebuying years, renters looking to escape skyrocketing rents and deep-pocketed investors drive demand,” said Frank Martell, president, and CEO of CoreLogic. “On the supply side, it is also the result of chronic underbuilding, especially of affordable stock. This lack of supply is unlikely to be resolved over the next 5 to 10 years without more aggressive incentives for builders to add new units.”
According to the report, in July, home prices rose sharply in the west with Twin Falls, Idaho, experiencing the highest year-over-year increase for a third consecutive month at 39.8%. Bend, Oregon, ranked second with a year-over-year increase of 37.1%.
“July’s annual home price growth was the most that we have ever seen in the 45-year history of the CoreLogic Home Price Index,” said Dr. Frank Nothaft, chief economist at CoreLogic. “This price gain has far exceeded income growth and eroded affordability. In the coming months, this will temper demand and lead to a slowing in price growth.”
