Home prices are expected to be flat in December compared with November but through the next 12 months, values should continue to appreciate, the latest CoreLogic Home Price Index report said.
Prices increased by 18.1% year-over-year in November and annual price growth has remained at 18% or above for the past five months. But through November 2022, CoreLogic predicts home prices will increase by just 2.8%.
However, one year ago, CoreLogic predicted annual price growth through November 2021 of just 2.5%. But in that November 2020 report, CoreLogic pointed out that possible stimulus actions could help spur demand among low- and middle-income families, which would support stronger home price growth over the next 12 months.
"Over the past year, we have seen one of the most robust seller's markets in a generation," Frank Martell, CoreLogic president and CEO, said in a press release. "While
November home prices grew 1.3% compared with the month before, the same percentage change between
The HPI forecast is not seasonally-adjusted, so monthly price changes tend to be lower in the fall and winter versus the typical home purchase seasons in the spring and summer. If the forecast was seasonally adjusted, it is probable a month-to-month increase would take place for December.
The three states with the highest annual price growth were Arizona, up 28.6%; Florida, at 25.8%; and Idaho, up 25.5%. Values were up in all 50 states.
The markets that CoreLogic identified as having a high probability of a home price decline in the next 12 months are: Prescott, Arizona; Lake Havasu City-Kingman, Arizona; and Worcester, Massachusetts. Springfield, Massachusetts, and Merced, California, were at moderate risk for a price decline.
