House prices rose by 2.0% y/y in April

To Estimated risk per 06/06/2023 08:11:00

Notes: This CoreLogic Home Price Index report for April.. Recent The release of the Case-Shiller index was for March. CoreLogic HPI is a three-month, non-seasonally adjusted (NSA) weighted average.

From CoreLogic: CoreLogic: House Price Rise Continues Yearly Single-Digit Decline in April

CoreLogic® … released today CoreLogic House Price Index (HPI™) and HPI Forecast™ as of April 2023.

Rising prices for single-family homes across the country rose 2% year-on-year in April.. It was the 135th consecutive month of annual gains, but the sixth consecutive month of single-digit gains that slowed from the all-time high of nearly 20% annual gains in the spring of 2022.

Numerous economic issues are contributing to buyer reluctance, including mortgage rate volatility and the associated uncertainty surrounding the recent debt ceiling debate. However, the ongoing shortage of homes for sale could put pressure on home prices over the next 12 months. CoreLogic predicts that home price growth will slow slightly in 2023 before recovering to around 5% per year by April 2024.

“While mortgage rate volatility continues to be a concern for buyers, a shortage of homes for sale is putting strong pressure on prices this spring, leading to above-average seasonal monthly incomes and a recovery in home prices in most markets,” said CoreLogic’s chief economist. Selma Hepp. “However, the recent rise in mortgage rates and ongoing inflation concerns suggest that rates may remain elevated, which could lead to lower house price growth this summer and a return to seasonal average growth later in 2023.”

“However, while tight inventories are once again pushing prices higher and limiting availability,” Hepp continued, “recent trends suggest that home price growth in 2023 will be in line with a historic 4% annual average.”

US home prices (including distressed sales) rose 2% year-on-year in April 2023 compared to April 2022. On a monthly basis, house prices rose 1.2% compared to March 2023..
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In March, this indicator increased by 3.1% y/y.