Courtesy of CoreLogic.
U.S. home prices rose annually in January, and they are expected to continue to climb on a national basis this year and reach a new high in March. However, some markets are lagging others, particularly in Florida, CoreLogic said in its monthly Home Price Insights report.
Nationally, home prices rose 3.3% year-over-year in January and were roughly flat month over month, with a gain of just 0.04% from December.
Meanwhile, the median sales price for all single-family homes in the U.S. was $375,000.
“Flattening home price changes over the last six months suggest further price deceleration is ahead,” Chief Economist Selma Hepp said in a press release. “More importantly, compressed monthly changes highlight the general lack of homebuying demand that continues to characterize the current housing market.”
The Northeast has proven the most resilient in the face of slowing job growth, high interest rates and affordability issues, while the Mountain West has seen prices fall furthest from their record highs, CoreLogic added.
Indeed, the Northeast led the way in price growth, with all but two of the top 10 hottest markets located in New York, New Jersey and Connecticut. On the flip side, most of the 10 coolest markets were in the Sunbelt, with Florida claiming five of them.
Parts of the Sunbelt — Florida and Arizona in particular — are most at risk for price declines, while western New York is gaining in popularity.
Looking ahead, the CoreLogic HPI Forecast indicates home prices will rise 3.6% between January 2025 and January 2026.
“While this year’s cold winter and large natural disasters play a role in dampening demand, falling consumer sentiment suggests potential homebuyers are wary of the short-term economic outlook and future inflation,” Hepp added. “Nevertheless, with the spring homebuying season upon us, the recent improvements in mortgage rates may help invite homebuyers back into the market.”
Courtesy of CoreLogic.