July Sees Over 2% Surge In Home Price Growth

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July Sees Over 2% Surge In Home Price Growth

Sep 19, 2023 | News | 0 comments

In July, home price gains delivered positive news, with a 2.5% year-over-year increase, rebounding from two consecutive months at 1.6%. This marks six straight monthly gains, pushing prices up by about 5% from February’s low point. Notably, all 11 states experiencing home price declines were in the Western US, mainly due to ongoing inventory issues. However, recent buyer competition is likely to reignite price increases. CoreLogic’s Home Price Index and Forecast predicts that states with July losses will return to gains by October this year.

Selma Hepp, CoreLogic’s Chief Economist, explained that annual home price growth in July regained momentum due to earlier strong appreciation. However, high mortgage rates have slowed additional price surges, returning monthly increases to typical seasonal patterns. In essence, home prices continue to rise but now follow historical seasonal norms.

Still, Hepp noted that the expectation of prolonged high mortgage rates has tempered price forecasts for the next year, especially in less affordable markets. However, due to the severe inventory shortage in the Western U.S., some of those markets should see more upward price pressure.

In July 2023, U.S. home prices experienced a year-over-year gain of 2.5%, marking the 138th consecutive month of annual growth. Attached properties showed a higher annual appreciation rate (3%) compared to detached properties (2.4%). CoreLogic’s forecast anticipates annual U.S. home price gains to increase to 3.5% by July 2024.

The median sales price for a U.S. single-family home in July was $375,000, with the highest prices seen in California ($700,000), the District of Columbia ($670,000), and Massachusetts ($590,000). Miami led the nation’s 20 tracked metro areas with a 9% year-over-year home price increase in June, followed by St. Louis (4.8%) and Detroit (4.5%).

In terms of states, Vermont topped the list for annual appreciation in July (8.5%), followed by New Hampshire and New Jersey (both at 7.3%). Eleven states recorded annual home price declines: Idaho (-5.7%), Nevada (-4.2%), Montana (-3.6%), Washington (-3.3%), Arizona (-2.9%), Utah (-2.8%), Oregon (-1.2%), Colorado (-0.6%), Texas (-0.6%), Wyoming (-0.5%), and California (-0.3%).