CoreLogic, a global property information, analytics and data-enabled solutions provider, released the CoreLogic Home Price Index and HPI Forecast for 2023.
U.S. single-family home prices rose by 4.5% year over year in September, the largest such gain since February.
The Northeast continued to post the strongest appreciation, with Maine seeing a 10.1% annual increase, the first double-digit HPI gain recorded in any state since early 2023. Despite mortgage rates that are approaching 8%, inventory constraints and a healthy U.S. job market should help keep price growth moderate but steady over the next year.
- U.S. single-family home prices increased by 4.5% on a year-over-year basis in September, the third month of acceleration and the highest such growth since early 2023.
- Home prices have now increased annually for 140 consecutive months and are up by 42% from the onset of the pandemic.
- Four Western states and Washington, D.C. saw year-over-year home price declines in September.
While annual home price growth continued its third month of upward momentum in September, this mostly reflects a comparison with last year’s lows, when prices began to cool from double-digit growth in autumn 2022Selma Hepp, chief economist for CoreLogic
“Still, given the continued rise of borrowing costs in 2023, it is remarkable to see how resilient home price growth has been in recent months,” Hepp continued, “with September’s 0.3% month-over-month gain lining up with pre-pandemic trends. Nevertheless, as mortgage rates significantly impact affordability, certain markets with continued in-migration from more expensive states are showing renewed buoyancy and outsized monthly price gains.”
U.S. single-family home prices (including distressed sales) increased by 4.5% year over year in September 2023 compared with September 2022. On a month-over-month basis, home prices rose by 0.3% compared with August 2023.
- Miami continued to lead major U.S. metro areas for annual home price gains for the 15th consecutive month.
- CoreLogic projects that annual home price growth will continue to rise modestly through January 2024 before relaxing to 2.6% in September 2024.
- In September, the annual appreciation of detached properties (4.7%) was 0.8 percentage points higher than that of attached properties (3.9%).
- CoreLogic’s forecast shows annual U.S. home price gains relaxing to 2.6% in September 2024.
- Miami posted the highest year-over-year home price increase of the country’s 20 tracked metro areas in September, at 8.5%. St. Louis saw the next-highest gain (7.9%); followed by Charlotte, North Carolina and Detroit (both 6.6%).
- Among states, Maine ranked first for annual appreciation in September (up by 10.1%), followed by Connecticut (up by 9.5%) and New Jersey (up by 9.2%). Four states and one district recorded year-over-year home price losses: Idaho (-2.6%), Utah (-1.7%), the District of Columbia (-1%), Montana (-0.9%) and Wyoming (-0.1%).
by Yana Keller