The latest CoreLogic Home Price Insights report is out, which solidifies the home price slowdown is well underway.
Annually, national home prices were up 6.9 percent in December compared to a year earlier. However, when compared to November 2022, home prices fell 0.4 percent.
The CoreLogic HPI Forecast indicates that home prices will decrease on a month-over-month basis by 0.2 percent from December 2022-January 2023 and on a year-over-year basis by 3 percent from December 2022 compared to December 2023.
“The continued slowing of home prices at the end of 2022 reflects weaker housing market demand, primarily caused by higher mortgage rates and a more pessimistic economic outlook in general. But while prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3 percent cumulative drop in prices since last spring’s peak,” said Selma Hepp, Chief Economist for CoreLogic. “Some exurban regions that became increasingly popular during the COVID-19 pandemic saw prices jump and affordability erode at the time, but these areas are now seeing major corrections. And while price deceleration will likely persist into the spring of 2023, when the market will probably see some year-over-year declines, the recent decrease in mortgage rates has stimulated buyer demand and could result in a more optimistic homebuying season than many expected.”
Only nine states registered double-digit year-over-year price increases in December, compared with 48 that posted double-digit gains in April. Idaho was the only state to post an annual decline in home prices in December, while Florida, Vermont and South Carolina posted the highest annual increases.