CoreLogic says house price growth should slow next year

Prices in February Nearly doubled quarterly CoreLogic says this was the norm before COVID-19 disrupted things. At the same time, annual growth slowed, a trend that is likely to continue for the remainder of the year.

CoreLogic House Price Index, a separate measure from the company’s own index Partnering with Standard & Poor’s and Case-ShillerFebruary saw a monthly increase of 0.7% and a quarterly increase of 5.5%. Same month last year.

Selma Hepp, chief economist at CoreLogic, said the annual growth rate fell from 5.8% in January, indicating that the market has finally shaken off the impact of January 2023 when price growth bottomed out.

In January 2023, annual price growth was 8.6%, but this was the first time in 21 months that it was below double digits, and compared with December 2022, prices were down 0.2%.

“Despite continued volatility in mortgage rates, house prices rose 0.7% from January to February 2024, almost double the pre-pandemic monthly increase,” Hupp commented in the release. Interest rates continue to fluctuate, but spring home price gains are off to a strong start.” “That said, more inventory finally hitting the market will likely give buyers more choices and fewer bidding wars, which typically It will curb significant price increases.”

Looking ahead, CoreLogic predicts that prices in March will increase by 0.4% quarterly and 3.1% annually.

HouseCanary data shows that total inventory increased 12.6% year-over-year, but the net value of new listings fell 4.4% in March.

This month, there were 234,838 net new homes on the market and 275,260 homes under contract. Compared to March 2023, the last data point represents an increase of 3.2%.

The median price for all single-family listings is $441,608. An increase of 2.5% from February Compared with March 2023, this is an increase of 3.2%. The median listing transaction was $413,998, a quarterly increase of 2.5% and an annual growth rate of 6.8%.

“The interest rate shock is the biggest factor in the continued scarcity of inventory,” HouseCanary CEO Jeremy Sicklick said in a press release. “The continued expectation that the Federal Reserve will cut interest rates in the coming months gives potential homeowners a sense of hope, but for now buyers It’s a seller’s market.”

The lack of inventory has led to another record: 550 U.S. cities where the typical home is worth more than $1 million. Zillow saw an increase of $59 compared to the same period last year.

“Affordability continues to be a huge challenge for buyers, but that hasn’t stopped prices from rising,” Zillow Economic Research data scientist Anushna Prakash said in a press release. There will be more options this spring, but they’ll also see plenty of other buyers hanging out at the same open house. “

Prakash said home prices in million-dollar cities will continue to surge as competition intensifies, especially if mortgage rates fall as expected.

Prices are rising faster in these areas than nationwide, Zillow found.

However, Moody’s noted in its monthly consumer loan performance update that homebuying activity is likely to remain fairly limited in 2024 given high prices, weak housing affordability, and existing homeowners’ reluctance to sell and give up low fixed-rate mortgages.

But if the U.S. economy cools as expected, many homeowners may resort to Advantages of Appreciation and Growth Taking cash out of their properties through a second lien mortgage or home equity line of credit, the report said.

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