The November 2022 Home Price Index (HPI) and HPI Forecast have been released by CoreLogic. The 21-month streak of double-digit momentum in November was ended by the year-over-year home price growth. It posted a gain of 8.6%. This is the lowest rate of appreciation in exactly two years.
Despite annual double-digit gains in 16 states, appreciation is slowing in several popular housing markets nationwide.
Prices still rose the most in the Southeastern states in November but they also experienced some of the most notable cooling. Similarly, western areas with relatively higher prices have reported considerable declines since spring’s peak.
Despite the rapid slowdown in home price growth in recent years, strong gains in the first half of last year suggest that 2022’s appreciation was just slightly below 2021’s. CoreLogic’s Deputy Chief Economist, Selma Hepp, stated this. It is however expected that 2023 will present its own challenges since both the housing market and the general economic outlook remain uncertain.
In November, home values nationwide fell 2.5% below their spring 2022 peak due to the recent price deceleration. During the second quarter of 2023, CoreLogic expects home values to begin slipping from their high point as home values continue to decline.
The appreciation rate of attached properties (8.8%) in November was 0.3 percentage points higher than the appreciation rate of detached properties (8.5%).
Among the country’s 20 largest metro areas, Miami posted the highest annual home price increase at 21.3%, while Tampa, Florida came in second at 17.3%. The highest annual home price gains were recorded by Florida and South Carolina at 18% and 13.9%, respectively. The state of Georgia posted the third-highest growth rate, with an increase of 13.6% over the last year. With a 1.2% appreciation rate, Washington DC ranked last.