Pam Ryan Anderson, Real Estate Broker/Owner of Ryan Realty thought you might appreciate reading the article below, stating that although home prices have increased for a consecutive 125 months, there is now a slowdown happening over the last couple of months. This is exactly what I have been seeing, and from what this article says, the rate of increase will slow down greatly but will continue to grow. This makes sense if you look at the fact that many, many people continue to move to Florida on a regular basis. I have a beautiful purple crystal ball sitting on my desk, but it doesn’t seem to be working. I keep asking what is going to happen next in the real estate market, but it isn’t giving me any answers. 😊
Pam is available at Pam@ryanrealty.org or 727-432-1528 if you would like to have Pam help you with a real estate cycle.
Home Prices Record 125 Straight Months of Growth
The latest Home Price Index (HPI) from CoreLogic covering June 2022 set a new milestone: it has now seen a record 125 consecutive months of year-over-year increases as home prices grew by 18.3% from June 2021.
According to CoreLogic, though annual appreciation was still strong, it slowed from the previous month for the second consecutive month, reflecting reduced buyer demand in part due to higher mortgage rates and worries about a slowing economy.
Looking into the future, CoreLogic predicts that year-over-year home price appreciation will drop to 4.3% by June 2023, bringing home price growth closer to historical averages recorded between 2010-2020.
“Signs of a broader slowdown in the housing market are evident, as home price growth decelerated for the second consecutive month,” said Selma Hepp, Interim Lead of the Office of the Chief Economist at 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 remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced.”
Other top takeaways from the report include:
- In June, annual appreciation of detached properties (18.7%) was 2.1 percentage points higher than that of attached properties (16.6%).
- Annual U.S. home price gains are forecast to slow to 4.3% by June 2023.
- Once again, Tampa, Florida logged the highest year-over-year home price increase of the country’s 20 largest metro areas in June, at 32.6%, while Phoenix retained the second slot at 26.1%. Following the nationwide trend, both metros saw annual home price gains slow from May.
- Florida and Tennessee posted the highest home price gains, 31.8% and 25.8% respectively. Arizona ranked third with a 24.9% year-over-year increase. Washington, D.C. ranked last for appreciation at 3.4%.
About Author: Kyle G. Horst
Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at kyle.horst@thefivestar.com.