October Home Price Growth Slows to Half of Spring 2022 PeakBy RISMedia Staff
U.S. home prices increased 10.1% year over year, down from the 20.1% growth in April, according to CoreLogic’s Home Price Index for October. On a month-over-month basis, home prices declined by 0.1% compared to last month
According to the report, several factors are contributing to slowing appreciation: low inventory due to seller preferences to keep affordable mortgage rates that they have already locked in, homebuyer loss of purchase power and current economic uncertainty. Annual price growth is expected to taper off in the coming months, perhaps moving into negative territory by spring 2023, but then slowly ticking back into single digits as the year progresses. Key highlights:
“Following the recent mortgage rate surge above 7%, real estate activity and consumer sentiment regarding the housing market took a nosedive,” said Selma Hepp, interim lead of the Office of the Chief Economist at CoreLogic. “Home price growth continued to approach single digits in October, and it will move in that direction for the rest of the year and into 2023.” “However,” Hepp continued, “while some housing markets have seen significant recalibration since the spring price peak and are likely to post losses in 2023, further deteriorating for-sale inventory, some relief in mortgage rate increases and relatively positive economic news may help eventually stabilize home prices.” For the full report, visit www.corelogic.com/tag/home-price-index. |
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