Home Prices Grow at Slowest Pace Since 2012

May 30, 2023 - 2 min read

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.

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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:

California-3.0%New York-0.6%

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:

Vermont9.9%Rhode Island7.0%
Maine8.5%New Jersey6.7%
South Carolina7.5%North Carolina6.6%
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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.

Plus, once you’re a homeowner, gains in value help you build equity, and in turn, personal wealth.

If you’re ready, speak with local mortgage and real estate professionals early in your process to determine the best budget and loan fits.

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Paul Centopani
Authored By: Paul Centopani
The Mortgage Reports Editor
Paul Centopani is a writer and editor who started covering the lending and housing markets in 2018. Previous to joining The Mortgage Reports, he was a reporter for National Mortgage News. Paul grew up in Connecticut, graduated from Binghamton University and now lives in Chicago after a decade in New York and the D.C. area.