The CoreLogic Home Price Index (HPI) and HPI Forecast for June 2023 show that U.S. home prices (including distressed sales) increased by 1.6% year over year in June 2023 compared with June 2022. On a month-over-month basis, home prices increased by 0.5% compared with May 2023, an indication that appreciation could be bottoming out.
CoreLogic expects year-over-year U.S. home price appreciation to pick up for the rest of 2023 and reach about 7% by early 2024.
Ten states and the District of Columbia posted annual home price declines in June, with some of the largest losses again recorded in the Northwest. However, since Western states are still grappling with a lack of homes for sale, prices in that region are likely to remain elevated over the long term.
“June’s annual bump in price growth echoes economic resiliency, a thriving U.S. job market and strong consumer spending,” says Selma Hepp, chief economist for CoreLogic. “And while higher mortgage rates are impacting affordability for buyers with loans, almost four in 10 sales are all-cash transactions. Also, most baby-boomer homeowners have substantial equity, which could be putting pressure on prices in markets where that generation is currently migrating.”
Of the country’s 20 tracked metro areas in June: Miami again posted the highest year-over-year home price increase at 8.9%. Detroit saw the next-highest gain (4.2%), followed by Atlanta (3.9%).
Among states, New Jersey ranked first for annual appreciation in June (up by 6.9%), followed by New Hampshire and Vermont (both up by 6.4%).
The ten states and one district that recorded annual home price losses: Idaho (-8%), Washington (-5.8%), Montana (-5.7%), Nevada (-5.3%), Arizona (-4.1%), Utah (-3.8%), Oregon (-2.3%), California (-2.2%), Colorado (-1.8%), Washington, D.C.(-0.6%) and New York (-0.3%).
Image by Giovanni Gargiulo from Pixabay.