Single-family home price growth rose by 2% year-over-year in April, according to new data from CoreLogic. This marked the 135th consecutive month of annual growth but the sixth straight month of single-digit gains. On a month-over-month basis, home prices increased by 1.2% from March to April.
Among the states, Indiana and New Jersey recorded the highest annual home price gains at 7.3% and 7.1%, respectively. The greatest annual loses were recorded by Washington (-7.7%), Idaho (-5.9%) and Utah (-4.9%).
“While mortgage rate volatility continues to cause buyer hesitation, the lack of for-sale homes is putting firm pressure on prices this spring, leading to above-average seasonal monthly gains and a rebound in home prices in most markets,” said CoreLogic Chief Economist Selma Hepp. “Nevertheless, the recent surge in mortgage rates and continued inflation issues suggest that rates may remain elevated, leading home price appreciation to possibly relax this summer and return to average seasonal gains later in 2023. Still, while slim inventory is pushing prices up once again and constraining affordability, recent trends suggest that home price growth in 2023 will fall in line with the historical 4% annual average.”
CoreLogic is projecting that home price growth will slow this year before regaining steam to achieve a 4.6% annual appreciation by April 2024.
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