The year-over-year pace of national home-price increases slowed for the fourth consecutive month in August but still remained in double digits, CoreLogic reported, citing its monthly Home Price Index.
Home prices were up 13.5% annually and down 0.7% month over month. Looking ahead, CoreLogic expects national year-over-year appreciation to slow to 3.5% by August 2023.
“The increased cost of homeownership has dampened buyer demand and caused prices to decelerate at a faster pace than initially expected,” said Selma Hepp, interim lead of the Office of the Chief Economist at CoreLogic.
“Housing markets on the West Coast and in the Mountain West, as well as second-home markets, recorded particularly strong price growth in the summer of 2021 but were the first to see month-over-month price declines during the same period this year,” Hepp added. “While decelerating price growth and price declines benefit younger potential homebuyers, mortgage rates that are approaching 7% may cut many hopefuls out of the picture.”
Single-family homes experienced annual appreciation of 13.7%, compared to 12.8% for attached properties.
Miami posted the highest annual increase among the country’s 20 largest metro areas, at 27.1%, followed by Tampa, at 26.9%.