Residential Real Estate News
U.S. Home Price Appreciation Hits 45 Year High
Nationwide home price appreciation reaches 19.1% in January
Based on CoreLogic's latest CoreLogic Home Price Index for January 2022, U.S. consumers looking to purchase a home have remained optimistic moving into the new year, with more expecting to buy over the next six months as rapid home price appreciation is forecasted to slow. Despite market and economic challenges such as low inventory, continued buyer competition and declining affordability, potential buyers are ready to move while mortgage rates remain relatively low.
"In December and January, for-sale inventory continued to be the lowest we have seen in a generation," said Dr. Frank Nothaft, chief economist at CoreLogic. "Buyers have continued to bid prices up for the limited supply on the market. However, the rise in mortgage rates since January further eroded buyer affordability and is expected to slow price gains in coming months."
Top Market Takeaways:
- Nationally, home prices increased 19.1% in January 2022, compared to January 2021. On a month-over-month basis, home prices increased by 1.4% compared to December 2021.
- In January, annual appreciation of detached properties (20.3%) was 5.1 percentage points higher than that of attached properties (15.2%).
- Home price gains are projected to slow to a 3.8% annual increase by January 2023.
- January marked the second consecutive month Naples (38.9%) and Punta Gorda (38.3%), Florida, logged the highest year-over-year home price increases.
- At the state level, the Mountain West and Southern regions continued to dominate the top three spots for national home price growth, with Arizona leading the way at 28.3%. Florida ranked second with a 27.9% growth and Utah followed in third place at 25.2%.
