Home price growth continued to slow as we closed out 2022, according to CoreLogic’s Home Price Index.
- Y-O-Y: Home prices nationwide increased year-over-year by 6.9% in December 2022 compared with December 2021, down from 8.6% in November and the lowest growth rate since the lowest rate since the end of summer of 2020.
- M-O-M: Home prices declined 0.4% month-over-month in December, down from the 0.2% drop in November and the sixth straight month of declines.
Less Than 20. For the first time since the start of the housing boom in 2020 not a single metro area reported 20% year-over-year growth. Miami took the top spot with 19.5% growth followed by Houston (+8.7%), Chicago (+5.8%), and Phoenix (+5.0%)
- Thanks to hot markets like Miami and Tampa Florida is still the hottest state with 15.3% year-over-year growth followed by Vermont (+13.5%) and South Carolina (+12.2%).
- Idaho was the first state to post a year-over-year decline.
Crystal Ball. Looking ahead, The CoreLogic HPI Forecasts that home prices will decrease on a month-over-month basis by 0.2% in January. However, the year-over-year appreciation increase to 3% for December 2023 from 2.8% in November 2023.
Analysis. Selma Hepp, Chief Economist for CoreLogic, said prices continue to fall but the rate of decline has slowed. “The continued slowing of home prices at the end of 2022 reflects weaker housing market demand, primarily caused by higher mortgage rates and a more pessimistic economic outlook in general. But while prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak.”