CoreLogic: Home Price Growth Inches Up in June

(Courtesy CoreLogic)

Annual home price growth inched upward in June but remained near an 11-year low, CoreLogic reported.

The CoreLogic Home Price Index gained 1.6%, slightly higher than in May, indicating that appreciation could be bottoming out, said Selma Hepp, Chief Economist for CoreLogic. The firm said it expects year-over-year U.S. home price appreciation to pick up for the rest of 2023 and reach about 7% by early 2024.

“While the continued imbalance between buyers and sellers continues to pressure home prices, June’s annual bump in price growth echoes economic resiliency, a thriving U.S. job market and strong consumer spending,” Hepp said. “And while higher mortgage rates are impacting affordability for buyers with loans, almost four in 10 sales are all-cash transactions. Also, most baby-boomer homeowners have substantial equity, which could be putting pressure on prices in markets where that generation is currently migrating.”

The report noted 10 states and the District of Columbia posted annual home price declines in June, with some of the largest losses recorded in the Northwest. “However, since Western states are still grappling with a lack of homes for sale, prices in that region are likely to remain elevated over the long term,” CoreLogic said.

Among states, New Jersey ranked first for annual appreciation in June (up by 6.9%), followed by New Hampshire and Vermont (both up by 6.4%).