According to the CoreLogic Home Price Index and HPI Forecast for May 2023: Annual U.S. single-family home price growth slowed for the 12th straight month in May, falling to a 1.4% increase year over year. The last time CoreLogic’s Home Price index saw annual growth fall to less than 2% was in early 2012, but U.S. appreciation still remained positive for the 136th straight month in May.
Following recent trends, a significant number of Western states saw prices decline in May from the same time in 2022, reflecting out-migration from less-urban locations where people moved during the height of the pandemic and the significant loss of affordability due to those resulting home price surges.
Northeastern states and Southeastern metro areas continue to see larger home price gains compared with other areas of the country, due to both workers slowly moving back to job centers in some areas of the country and settling in relatively affordable places in others.
“Following a cumulative increase of almost 4% in home prices between February and April of 2023, elevated mortgage rates and high home prices are putting pressure on potential buyers,” says Selma Hepp, chief economist at CoreLogic. “These dynamics are cooling recent month-over-month home price growth, which began to taper and is returning to the pre-pandemic average.
- In May, the annual appreciation of attached properties (2.7%) was 1.7 percentage points higher than that of detached properties (1%).
- 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, North Carolina saw the next-highest gains, both at 4.4%.
- CoreLogic forecasts show annual U.S. home price gains increasing to 4.5% by May 2024.
- Eleven states, including Idaho (-8%), Washington (-7.5%), Nevada (-5.6%), plus the District of Columbia recorded annual home price losses.