According to the latest CoreLogic Home Price Insights (HPI) report, home prices nationwide, including distressed sales, increased 20.9% year-over-year in April. On a month-over-month basis, home prices increased by 2.6% in April compared with March. CoreLogic’s HPI Forecast predicts home prices will increase on a year-over-year basis by 5.6% from April 2022 to April 2023.
“The record growth in home prices is a result of a scarcity of for-sale inventory coupled with eager buyers who want to purchase before mortgage rates go higher. Buyers who closed on their home in April had locked in their mortgage rate in February or March, when rates were lower than today. With 30-year fixed mortgage rates much higher now, we expect to see waning buyer activity because of eroding affordability. As a consequence, our forecast projects slowing price growth over the coming year.” Said Patrick Dodd, President and CEO of CoreLogic.