CoreLogic Finds Annual Home Price Growth Stalls in October
(Illustrations courtesy of CoreLogic)
Home prices rose just 0.02% in October, CoreLogic reported in its U.S. Home Price Insights report.
“The stagnation highlights the fact that home price growth has remained relatively flat since this summer, only eking out gains in certain pockets of the country,” the report said.
CoreLogic said prices rose by 3.4% on an annual basis during October and are projected to slow to 2.4% by the same time next year.
“Similar to much of the housing market activity, home prices continued to mostly move sideways in October,” CoreLogic Chief Economist Selma Hepp said. “A slight home price bump after a late summer decline reflects the rebound in home buying demand resulting from a short but effective decline in mortgage rates in August. Still, as we continue to bump along during this slower time of the year for the housing market, home prices are not expected to reveal much about what’s ahead for the spring home buying market.”
Hepp noted springtime has seen home prices jump higher than before the pandemic despite elevated mortgage rates in the last few years.
The Northeast has proved particularly resilient to current economic conditions despite slower job growth, elevated interest rates and ongoing affordability concerns. New Jersey, Rhode Island, and New Hampshire claimed three out of the top five spots for year-over-year price gains, rising 8.1%, 7.5%, and 6.3%, respectively. Rhode Island and New Jersey prices reached new highs in October.
Meanwhile, Washington D.C., Idaho, and Montana top the list this month for the states that are furthest from their price peaks. Each location was down from its former high point by -3.5%, -2.5%, -2.1%, respectively. However, on a year-over-year basis, Washington D.C. prices are still up 4.7%. Hawaii was the only state to post an annual home price decline.
Despite the price declines seen in certain areas of the country, overall national price growth is expected to continue at a muted pace. Still, forecasts suggest that national single-family home prices will reach a new peak level in April 2025. Currently, the median sales price for all single-family homes in the U.S. is $385,000.
