According to the CoreLogic Home Price Insights report, home prices saw a dramatic slowdown in July thanks to an actual price drop month-over-month.
- Y-O-Y: Home prices were down 2.5 percentage points to 15.8% when compared to July 2021.
- M-O-M: Home prices actually fell 0.3% in July when compared to the previous month, this is down from 0.6% growth in June.
Looking ahead. CoreLogic is nor projecting that home prices will increase 0.6% in August and now believe that home prices will be up just 4.3% in July of 2023.
Not slowing everywhere. Nationally home prices may be slowing but in the top market prices are still on the up and up. Home prices in Miami are now up 27.1% year-over-year, up from 25.3% in June.
- Phoenix was number two despite a 4 percentage point drop in appreciation to 22.1% followed by Las Vegas (+21.6%), San Diego, (+17.2%) and Houston (+16.4%).
All about affordability. Selma Hepp Economist at CoreLogic says rising home prices and rates have really crushed affordability. “Following June’s surge in mortgage rates and the resulting dampening effect on housing demand, price growth is taking a decisive turn….The higher cost of homeownership has clearly eroded affordability, as inflation-adjusted monthly mortgage expenses are now even higher than they were at their former peak in 2006.”