CoreLogic (an international company collecting and analyzing real estate information and offering data-based solutions) quotes the House Price Index for last November and a forecast for 2023 in a recently published report.
According to this data, prices of residences in most US communities will continue to rise despite a series of negative drivers in the real estate market. However, the prices will no longer soar by double digits like they used to. Their growth has decelerated and might reduce further in spring 2023. For instance, last November, prices increased by only 8.6%, the lowest over the past two years.
The key conclusions from the report are as follows.
- The greatest annual house price growth was recorded in Florida and South Carolina, by 18% and 13.9%, respectively.
- Among 20 largest US metropolitan areas, the prices of residential properties grew the most in Miami (+21.3% year-on-year) last November. Tampa remained in the second place with 17.3%.
- House prices in general across the USA (including distressed sales) increased by 8.6% in November 2022 compared to November 2021. The prices slumped by 0.2% compared to October.
- Prices of multi-family houses grew by 8.8% year-on-year, slightly faster than prices of detached houses (8.5%).
- House price growth is forecast to slow down to 2.8% by November 2023.
Analysts from CoreLogic believe that over the next 12 months, the growth of residential property prices will continue to decelerate. Customer confidence in the housing market and the economy in general is now relatively low, but Selma Hepp, Deputy Chief Economist at CoreLogic, is certain that this market will perform better in 2023, as the availability of properties gradually improves.