Home price growth is dropping
Borrowers may finally be getting some relief in the price piece of the home buying equation.
After toiling through record-high housing value gains over the last few years, annual home price growth hit its lowest rate since 2012, according to CoreLogic.
And while national price growth returning to historical norms is a welcome sight, some states even saw values dip from last March.Verify your home buying eligibility. Start here
Housing market gains
U.S. housing values rose 3.1% annually and 1.6% monthly in March, according to CoreLogic’s Home Price Index (HPI). It marked the 134th straight month of year-over-year increases, but the smallest one since 2012.
The data provider forecasted jumps of 4.6% for next year and 0.8% for April. These rates of growth pale in comparison to the 20.9% and 3.3%, respectively, experienced in March 2022. For a pre-pandemic reference point, the HPI climbed 3.7% annually and 1% monthly in March 2019.
Although for-sale inventory has shown recent improvements, it still holds listing prices high and is a barrier to homeownership for many.
“While the lack of affordability generally weighs on home price growth, mobility resulting from remote working conditions appears to be a current driver of home prices in some areas of the country,” said Selma Hepp, chief economist for CoreLogic.
Home price growth at the local level
While the national HPI increased by 3.1% annually in March, rates varied in different states and metropolitan areas, with some seeing annual declines.
A group of 10 states had negative yearly price growth. Home prices in Washington fell the furthest with a 7.4% decrease from March 2022. Idaho, Nevada, and Utah followed with drops of 3.6%, 3.5% and 3.4%, respectively. Many of these states share a common thread of incurring the highest buyer demand and price growth throughout the pandemic.
Below is a table of all 10 states with annual declines in the HPI for March 2023:
On the other end of the spectrum, Vermont showcased the biggest spike in March’s HPI, with a yearly gain of 9.9%. Indiana, Florida, and Maine came next with home price rises of 9.2%, 8.9% and 8.5%.
Below is a table of the top-10 states by annual increases in HPI for March 2023:
|South Carolina||7.5%||North Carolina||6.6%|
Your next steps
If you’re looking to buy a house but a lack of affordability holds you back, you’re not alone. The good news is home price growth has greatly come down and the pace should continue to move within a historically normal range.
If you’re ready, speak with local mortgage and real estate professionals early in your process to determine the best budget and loan fits.Time to make a move? Let us find the right mortgage for you