CoreLogic published its research this month reporting that over the last 12 months, home prices nationwide, including distressed sales, increased year-over-year by 15.8% in July 2022 compared with July 2021. Yet, there was a distinct slowdown on prices on a month-to-month basis, where home prices declined by 0.3% in July 2022 compared with June 2022.
Forecast Prices Nationally
The CoreLogic HPI Forecast indicated that home prices will continue to increase on a month-over-month basis by 0.3% from July 2022 to August 2022, resulting in a year-over-year increase of 3.8% from July 2022 to July 2023.
Housing Market Showing Signs of Better Balance
The annual home price growth significantly slowed for the third consecutive month in July. Still, the market posted a double-digit increase from 2021 of 15.8%.
Clearly, the rise in the 30-year, fixed-rate mortgages rate to over 6% this summer caused some prospective homebuyers to pull back their offers. Specifically, home prices declined by 0.3% from June to July, a trend not seen between 2010 and 2019, when price increases averaged 0.5% between those two months.
CoreLogic expects to see a more manageable housing market, with year-over-year appreciation slowing to under double-digits on an annual basis.
The surge in June’s mortgage rates resulted in a dampening of the housing demand from a buyer’s perspective, impacting slower price growth in most markets. This is clearly having a further deceleration of prices for the near future.
With the combination of some of the highest inflation since the ’70s, and the impact upon real earnings, higher cost of homeownership is now an affordability issue, not just a matter of inventory shortages.
As home prices increased 15.8% nationally on a year-over-year basis in July, no states posted an annual decline in home prices.
The states reporting the highest increases year-over-year were Florida (29.6%), South Dakota (23.7%) and Tennessee (23.2%), and Miami, as a metropolitan area, coming in at the top spot with a 27.1% year-over-year increase.
Certain Markets Are Reported to be at Greater Risk from Home Price Decline
The CoreLogic report predicts that Bremerton-Silverdale, WA is at a very high risk (70%-plus probability) of a decline in home prices over the next 12 months. Crestview-Fort Walton Beach-Destin, FL; Bellingham, WA; Reno, NV and Boise City, ID are also at very high risk for price declines.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/