Home prices grew by 19.1% annually in January 2022 and were up 1.4% from December 2021, according to CoreLogic’s Home Price Index (HPI) and HPI Forecast.
The index found that annual appreciation of detached properties was 20.3%, 5.1 percentage points higher than that of attached properties, which saw a 15.2% increase.
Naples and Punta Gorda, Florida, had the highest YOY home price growth for the second month straight, at 38.9% and 38.3%, respectively.
The Mountain West and Southern regions dominated price growth nationally. Arizona took the number one spot with gains of 28.3%, followed by Florida (27.9%), and Utah (25.2%).
But CoreLogic predicts that appreciation will slow to 3.8% annually by January 2023.
“In December and January, for-sale inventory continued to be the lowest we have seen in a generation,” said Dr. Frank Nothaft, chief economist at CoreLogic.
“Buyers have continued to bid prices up for the limited supply on the market. However, the rise in mortgage rates since January further eroded buyer affordability and is expected to slow price gains in coming months.”
Bidding wars hit their highest level since at least April 2020, with 70% of home offers from Redfin agents facing competition in January. With a record-low number of homes for sale, purchase applications have fallen to their lowest point since December 2019.
“Rising mortgage rates are intensifying an already-severe shortage of homes for sale because buyers are feeling more urgency to buy while homeowners are feeling less urgency to sell—an imbalance that’s fueling an increase in competition,” Redfin Chief Economist Daryl Fairweather recently said.
“Buyers are battling it out for the few homes on the market in an effort to lock in relatively low payments before rates move even higher, but homeowners who bought or refinanced in the last year are staying put because they don’t want to lose their rock-bottom mortgage rate.”