CoreLogic: Annual Home Price Growth Drops to Lowest Rate in 11 Years

(Courtesy CoreLogic)

Annual U.S. single-family home price growth slowed for the twelfth straight month in May, falling to 1.4% increase year over year, reported CoreLogic, Irvine, Calif.

The last time the CoreLogic Home Price index saw annual growth fall to less than 2% was in early 2012, the data firm reported. But U.S. price appreciation did remain positive for the 136th straight month in May.

“After peaking in the spring of 2022, annual home price deceleration continued in May,” said Selma Hepp, chief economist at CoreLogic. “Despite slowing year-over-year price growth, the recent momentum in monthly price gains continues in the face of recent mortgage rates increases.”

Hepp noted elevated mortgage rates and high home prices are putting pressure on potential buyers. “These dynamics are cooling recent month-over-month home price growth, which began to taper and is returning to the pre-pandemic average, with a 0.9% increase from April to May,” she said.

Other takeaways from the report:

-In May, the annual appreciation of attached properties (2.7%) was 1.7 percentage points higher than that of detached properties (1%).

-CoreLogic forecasts show annual U.S. home price gains increasing to 4.5% by May 2024.

-Miami again posted the highest year-over-year home price increase of the country’s 20 tracked metro areas in May, at 11.8%. Atlanta and Charlotte, N.C. saw the next-highest gains, both at 4.4%.

-Among states, Maine ranked first for annual appreciation in May (up by 7.2%), followed by New Jersey (up by 7.1%) and Indiana (up by 6.9%). Eleven states and the District of Columbia recorded annual home price losses: Idaho (-8%), Washington (-7.5%), Nevada (-5.6%), Montana (-5.3%), Utah (-4.3%), Arizona (-4.2%), California (-3.5%), Oregon (-3.1%), Colorado (-2.7%), South Dakota (-1.3%), New York (-0.3%) and the District of Columbia (-0.1%).