“Annual home price growth regained momentum in July, which mostly reflects strong appreciation from earlier this year,” said Selma Hepp, chief economist at CoreLogic. “That said, high mortgage rates have slowed additional price surges, with monthly increases returning to regular seasonal averages. In other words, home prices are still growing but are in line with historic seasonal expectations.”
Vermont registered the year-over-year growth (8.5%) in July, followed by New Hampshire and New Jersey (both 7.3%). However, 11 states posted annual home price losses due to inventory shortages: 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%).
The report forecasted a 3.5% increase in annual home prices by July 2024. CoreLogic also expects all states that saw losses in July will start recovering by October this year as buyer competition heats up prices again.
“Nevertheless, the projection of prolonged higher mortgage rates has dampened price forecasts over the next year, particularly in less-affordable markets,” Hepp said. “But as there is still an extreme inventory shortage in the Western US, home prices in some of those markets should see relatively more upward pressure.”
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