CoreLogic’s latest Home Price Insights report revealed that home prices nationwide grew 18.3% year over year in June — a still strong rate of appreciation that nonetheless came down from the previous month.
While June marked the 125th straight month of annual price growth, it was also the second month in a row of price-growth slowing as economic uncertainties combined with rising rates to continue dampening homebuyer demand. CoreLogic projects more of that dampening moving forward, predicting that annual home-price appreciation will plummet to 4.3% by June 2023 — more in line with average home-price growth from 2010 to 2020.
On a monthly basis, prices were up 0.6%.
“Signs of a broader slowdown in the housing market are evident, as home price growth decelerated for the second consecutive month,” said Selma Hepp, deputy chief economist for CoreLogic. “This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates and the resulting increased cost of homeownership.
“Nevertheless, buyers still remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced.”
Tampa remained atop the country’s 20 largest metro areas when it came to annual home-price gains at 32.6%. Phoenix stayed in second at 26.1% year over year, leading the nation’s 10 largest metros. Annual price appreciation slowed in both cities from May, following the national trend.
The Sun Belt, which has seen quite a bit of inbound migration from pricier coastal gateways during the pandemic era, saw seven states log a yearly price increase exceeding 20%. In fact, nine of the top 10 states for yearly appreciation were warm-weather states in the South and Southwest. Florida saw the highest yearly appreciation at 31.8%, followed by Tennessee at 25.8%, Arizona at 24.9%, North Carolina at 24.7% and South Carolina at 23.5%.
The District of Columbia had the lowest price annual gain at 3.4%.