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National  + Finance  | 
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CoreLogic Home Price Index Soars 20% in February to Record High 

Property information and analytics concern CoreLogic says its CoreLogic Home Price Index registered a 20% year-over-year advance in February to a record high, and the company expects overall home prices to advance by a further 5% in 2022.

While prospective buyers outnumber sellers, a record-low number of homes for sale remains the primary culprit for the rapid price gains. The CoreLogic HPI Forecast shows national year-over-year appreciation slowing to 5% by February 2023, as rising interest rates are expected to sideline even more buyers.

”New listings have not kept up with the large number of families looking to buy, leading to homes selling quickly and often above list price,” said Dr. Frank Nothaft, chief economist at CoreLogic. “This imbalance between an insufficient number of owners looking to sell relative to buyers searching for a home has led to the record appreciation of the past 12 months. Higher prices and mortgage rates erode buyer affordability and should dampen demand in coming months, leading to the moderation in price growth in our forecast.”

Top Takeaways:

  • Nationally, home prices increased 20% in February 2022, compared to February 2021. On a month-over-month basis, home prices increased by 2.2% compared to January 2022.
  • In February, annual appreciation of detached properties (21.1%) was 4.8 percentage points higher than that of attached properties (16.3%).
  • Home price gains are projected to slow to 5% by February 2023.
  • In February, Naples, Florida logged the highest year-over-year home price increase at 41.4%. Cape Coral, Florida ranked second, with a 40% year-over-year increase. All four metro areas with the largest annual price gains in February are on Florida’s Gulf Coast. By contrast, two metros in upstate New York posted the lowest home price increases in the country: Ithaca (5.2%) and Elmira (3%).
  • At the state level, warmer regions of the U.S. continued to show the largest increases, with Florida showing the country’s strongest price growth at 29.1%. Arizona ranked a close second with 28.6% growth, while Nevada was third, at 25.8% annual appreciation.
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About Ted Jackson

A highly successful financial journalist, corporate financial writer and magazine entrepreneur with strong expertise in writing on fixed income and pass-through securities (ABS), finance and banking, the economy, economic developments, financial markets, investing and personal finance, the business of behavioral healthcare and more.

  • ◦Economy
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