Home price growth showed further signs of deceleration in June, according to data released Tuesday from financial services company CoreLogic.
Home prices surged 18.3 percent between June 2021 and June 2022, and increased 0.6 percent between May and June of 2022, according to the data.
The increase, while unusually high by normal standards, marked the second-consecutive month of price deceleration as the market shifts away from the cheap mortgage environment brought about by COVID since 2020.
As mortgage rates jumped from below 3 to above 5 percent throughout 2022, homebuyer demand has continued to weaken, with sales of existing homes dropping for five straight months. While growth is decelerating, home prices have remained the most resilient indicator of the housing market, remaining high and climbing in most markets.
“Signs of a broader slowdown in the housing market are evident, as home price growth decelerated for the second consecutive month,” said Selma Hepp, interim lead of the Office of the Chief Economist at CoreLogic. “This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates and the resulting increased cost of homeownership. Nevertheless, buyers remain interested, which is keeping the market competitive — particularly for attractive homes that are properly priced.”
CoreLogic forecasts that annual price growth will slow to 4.3 percent by June 2023.
Tampa, Florida, was once again the market that saw the highest level of price growth, climbing 32.6 percent year over year, while Phoenix saw the second highest growth at 26.1 percent. Both cities saw price gains slow from May, according to CoreLogic.
Florida and Tennessee saw the highest price gains among the 50 states, with increases of 31.8 and 25.8 percent respectively. Arizona ranked third with a 24.9 percent annual increase and Washington D.C. ranked last with an increase of only 3.4 percent.