Prices rise more than expected, with detached homes leading the increase
Home prices rose for the fifth consecutive month of annual gains above 5%, according to the latest Home Price Index (HPI) and HPI Forecast released by CoreLogic.
Despite higher mortgage rates and the ongoing affordability challenges that sideline many potential buyers, single-family home prices, including distressed sales, rose 5.3% year-over-year in March. On a month-over-month basis, prices climbed 1.2% from February.
“Home prices increased again this March beyond the typical seasonal uptick,” said Selma Hepp, chief economist for CoreLogic.
She cited the persistent mismatch between housing supply and demand as a key driver, noting “the surging cost of homeownership, further fueled by rising insurance and tax expenses, is holding potential home sales back, as is evident in the slow rise in sales compared with last year.”
Detached properties saw stronger price appreciation of 5.7% year-over-year in March, outpacing attached homes at 4.1%.
Among major metro areas, Miami led the nation with a 10.6% annual increase, followed by San Diego at 9.4%. No states posted year-over-year home price declines.
CoreLogic explained that states where some Americans migrated to escape the brunt of the pandemic are now the furthest from their price peaks, led by Idaho, Washington and Utah.
The Northeast continued posting the largest overall gains as Americans migrated to suburban communities near major job hubs. New Jersey ranked highest for state-level appreciation at 12.2%.
“Markets with larger additions of homes for sale are now experiencing slowing home price appreciation,” CoreLogic said in the report, contrasting inventory gains in places like Florida and Texas against tightening northeastern markets.
Read next: Home equity hits all-time high, fueling second mortgage market
CoreLogic projects US home prices to rise 3.7% over the next 12 months ending March 2025, moderating from current levels as affordability constraints persist.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
