The Week Ahead: Headed for Housing Market Normalization?

On Tuesday, May 31, CoreLogic will be releasing its latest National Home Price Index. As described by CoreLogic, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index "is a composite of single-family home price indices for the nine U.S. Census divisions and is calculated monthly."

In advance of the release, here's what CoreLogic Deputy Chief Economist Selma Hepp had to say about the current state of the housing market and home prices:

"With the Fed’s more aggressive talk on tightening financial conditions and expectations of higher mortgage rates throughout 2022, home buyers rushed into the housing markets in early months of this year, reigniting the buyer frenzy and pushing home price growth to new highs. Even monthly increases in home prices reached new post-pandemic highs in the first quarter of 2022. However, since mortgage rates have hit the psychological 5% benchmark, buyers are stepping back and allowing housing market conditions to normalize again. Fewer buyers and more available for-sale inventory means slower growth of home price growth in the months ahead."

Insights from recent CoreLogic housing market data include:

• Nationally, home prices increased 20.9% in March 2022, compared to March 2021. On a month-over-month basis, home prices increased by 3.3% compared to February 2022.
• In March, annual appreciation of detached properties (22%) was 4.7 percentage points higher than that of attached properties (17.3%).
• Annual home price gains are forecast to slow to 5.9% by March 2023.
• In March, Tampa, Florida, logged the highest year-over-year home price increase of the country’s 20 largest metro areas at 32.5%. Phoenix ranked second with a 30.4% year-over-year gain. On the lower end of the price growth spectrum were the New York and Washington metro areas, both at 9.9%.
• Mirroring metro level trends, Florida and Arizona were the states with the highest home price gains, a respective 31.4% and 28.7%. Tennessee edged out Nevada for third place with a 26.7% increase in home price growth.