by Calculated Risk on 2/06/2024 08:21:00 AM
Notes: This CoreLogic House Price Index report is for December. The recent Case-Shiller index release was for November. The CoreLogic HPI is a three-month weighted average and is not seasonally adjusted (NSA).
From CoreLogic: Job Growth Continues to Drive Annual Home Price Gains in December, CoreLogic Reports
• Annual U.S. home price growth was 5.5% in December 2023, the highest rate of appreciation recorded since January 2023.
• Year-over-year U.S. home prices have recorded annual gains since early 2012.
• In 2023, the average CoreLogic Home Price Index gain was 3.9%, down from 14.5% in 2022 but the same as the annual average in 2019.
• Northeastern states continued to lead the U.S. for annual price gains, with Rhode Island on top at 13.3%.
• Among large metro areas, Miami returned to the No 1. spot for year-over-year home price increases in December, posting a gain of almost 11%.
“Last winter’s mortgage rate surge impacted seasonal home price changes in many markets and suggests that annual gains may have reached the cycle peak and will level off in the coming months,” said Dr. Selma Hepp, chief economist for CoreLogic. “But while appreciation is projected to slow, home prices will continue to extend to new highs entering the typically busy spring homebuying season. Also, while the recent dip in mortgage rates help improve some affordability challenges, additional rate declines may not arrive until the second half of 2024.”
“The 2024 homebuying season should enjoy a boost because of pent-up demand, as well as a robust job market and wage growth,” Hepp continued. “Geographic patterns in price gains continued to favor housing markets in the Northeast and the South, especially those that remain more affordable and have lagged in home price increases over the past couple of years.”