CoreLogic: Home Price Appreciation Near 21%
CoreLogic, Irvine, Calif., said home prices nationwide, including distressed sales, increased year over year by 20.9% in April from a year ago.
On a month-over-month basis, the company’s monthly Home Price Index reported home prices increased by 2.6% in April from March.
Nationwide, home prices posted another record-high year-over-year increase in April, marking the 123rd straight month of gains. Rising mortgage rates drove buyer urgency and the resulting price growth, with nearly 70% of U.S. homes selling for more than asking price this spring. However, higher mortgage rates will likely also put the brakes on buyer demand in the coming months, causing annual home price appreciation to cool to 5.6% by April 2023.
“The record growth in home prices is a result of a scarcity of for-sale inventory coupled with eager buyers who want to purchase before mortgage rates go higher,” said CoreLogic President & CEO Patrick Dodd. “Buyers who closed on their home in April had locked in their mortgage rate in February or March, when rates were lower than today. With 30-year fixed mortgage rates much higher now, we expect to see waning buyer activity because of eroding affordability. As a consequence, our forecast projects slowing price growth over the coming year.”
No states posted an annual decline in home prices. States with the highest increases year over year were Florida (32.4%), Arizona (28.1%) and Tennessee (27.2%). Large cities continued to experience price increases in March, with Phoenix leading the way at 29.7% year over year.