Major updates in the lending and mortgage industry are coming down the pipeline. To grasp why changes are occurring and what to expect, we dove into the recent findings from CoreLogic. 

Since some of the numbers and language can be highly contextualized, we’ll break down the most significant data and what it means for homebuyers. 

Home Price Update

In March 2023, U.S. home prices increased by 3.1% year-over-year, marking the lowest rate of appreciation since the spring of 2012. On a month-over-month basis, home prices increased by 1.6% in March 2023 compared with February 2023. 

The CoreLogic Home Price Index (HPI) Forecast predicts that home prices will increase by 0.8% from March 2023 to April 2023 and by 4.6% year-over-year from March 2023 to March 2024. The article from CoreLogic examines the current state of the U.S. housing market, focusing on home price growth, market segments, and top metros at risk of home price decline.

While home price growth rose for the 134th consecutive month, it declined from one year earlier in 10 states, mainly in the West, reflecting the region's lack of affordability and continued inventory shortages. 

Moreover, demand for higher-priced homes is slowing compared with median-priced homes, resulting in faster depreciation in that region. 

Some potential homebuyers are hesitant due to inflation, slowing job gains and wage growth, a possible recession and interest rates still elevated above a mortgage rate of 5.5%, likely attracting more buyers to the market.

Forecast Prices Nationally

The CoreLogic HPI Forecast predicts that home prices will increase on a month-over-month basis by 0.8% from March 2023 to April 2023 and increase on a year-over-year basis by 4.6% from March 2023 to March 2024.

They also project that annual home price growth will continue to decline over the spring and early summer before picking back up later in 2023.

Bottom Line

While CoreLogic HPI features broad coverage, many changes in the Florida housing market weren’t highlighted. For example, did you know that Florida saw the highest increases nationwide on a year-over-year basis? 

Be sure to tune into our latest episode, where we break down the recent data from CoreLogic and CPI and policy changes that have affected the Florida mortgage landscape.