Will this home price appreciation slow down any time soon?
CoreLogic released its latest Home Price Index and HPI Forecast on Tuesday, showing a 20% year-over-year bump in US home price growth in February.
The annual gain in February marked 12 months of straight double-digit increases, according to CoreLogic. “Annual price growth has been recorded every month for the past decade. While prospective buyers outnumber sellers, a record-low number of homes for sale remains the primary culprit for the rapid price gains,” the property data and analytics company said in a release.
On a monthly basis, home prices rose by 2.2%. The annual price growth of detached properties (21.1%) was 4.8% higher than that of attached properties (16.3%).
In February, Naples, Fla., registered the highest annual home price increase at 41.4%. Cape Coral, Fla., followed closely with a 40% yearly gain. By contrast, two metros in upstate New York posted the lowest price appreciation in the country: Ithaca (5.2%) and Elmira (3%).
“New listings have not kept up with the large number of families looking to buy, leading to homes selling quickly and often above list price,” said CoreLogic chief economist Frank Nothaft. “This imbalance between an insufficient number of owners looking to sell relative to buyers searching for a home has led to the record appreciation of the past 12 months.”
The CoreLogic HPI Forecast expects national year-over-year appreciation to decelerate to 5% by February 2023.
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“Higher prices and mortgage rates erode buyer affordability and should dampen demand in the coming months, leading to the moderation in price growth in our forecast,” Nothaft explained.
