Home Price Growth Sets Yet Another Record In 122nd Month Of Consecutive Increases

Home prices rose by 20.9% YOY in March, setting another record and marking the 122nd consecutive month of YOY home price increases nationally, according to CoreLogic’s Home Price Index (HPI) and HPI Forecast. Home prices were up 3.3% from the month prior. The annual appreciation of detached properties (22%) was 4% higher than that of attached properties (17.3%). But the company predicts that home price growth will moderate to 5.9% by March 2023 due to rising interest rates and low affordability. Late April rates jumped about 30% YOY, a “trend that might derail more prospective buyers.” “The annual growth in the U.S. index was the largest we have measured in the 45-year history of the CoreLogic Home Price Index,” said…

Demand Keeping Market Hot Despite Rising Prices: “Plenty Of Fuel In The Tank”

Monthly mortgage payments are up by 19.5% from three months ago, and 38% YOY, according to Zillow’s March Real Estate Market Report. Annual home value growth set a new record for the 12th consecutive month. The typical home is now worth $337,560, up 20.6% YOY. At the same time, mortgage rates have grown from 3.51% at the beginning of March to breach the 5% mark at the end of the month. The combo has pushed monthly payments up 38% YOY on a home with a 30-year mortgage and 20% down payment. Despite this, Zillow reports that the pace and volume of sales picked up, “showing the depth of the pool of homebuyers willing and able to meet current asking prices.”…

Fannie Mae HPI Rises To Fastest Pace On Record

The Fannie Mae Home Price Index (FNM-HPI) rose to its fastest annual pace ever on record in Q1 2022, measuring 20% YOY, the company reported. This is up from an annualized rate of 19.1% in Q4 2021, the fastest pace in the index’s 47-year history. Seasonally adjusted home prices rose 4.8% from last quarter. The FNM-HPI is a national, repeat-transaction home price index that measures average quarterly price change on all single-family properties in the U.S., excluding condos. The FNM-HPI will now be publicly available as a quarterly series with a start date of Q1 1975. “We’re pleased to begin sharing the Fannie Mae Home Price Index with external audiences. We have long used this index within the company, including…

March Home Sales Dropped 4% From Feb, Sign Of A Potential Slowdown

Home sales dropped by 4% last month and 8% YOY, closing out a fast-paced March with signs of a potential cooldown, Redfin reported. Homes sold at their fastest pace ever and for more above list price than any other March in history. The median home-sale price rose 6.2% to $412,700, a record high and the fastest month-over-month gain for this time of year since 2013. But seasonally adjusted home sales fell 4% thanks to severe inventory shortages, rising rates, and accelerating home prices. Seasonally adjusted active listings—the count of all homes that were for sale at any time during the month—fell 13% YOY to an all-time low. “Although pricey coastal markets began showing early signs of a slowdown in late…

Warm Weather States Lead Home Price Gains

Stock shortages continue to drive home price appreciation, with February home prices rising 20% YOY and 2.2% from the prior month, according to CoreLogic’s Home Price Index. Annual appreciation of detached properties was 4.8 percentage points higher (21.1%) than attached properties (16.3%). Sun Belt states led the record high price appreciation. Naples, FL, saw the highest YOY price increase at 41.4%, with Cape Coral close behind at 40%. The four metros with the largest annual price gains were all on Florida’s Gulf Coast. Florida saw the strongest growth of all states at 29.1% YOY, followed by Arizona (28.6%) and Nevada (25.8%). CoreLogic says the record growth can be traced to record-low inventory, which forces buyers to compete for a limited…

Home Prices Saw Largest Ever Annual Gains In February 2022

Home prices rose 1.84% in February and 19.6% year-over-year, the largest annual gains on record, according to Black Knight’s Monthly Mortgage Monitor Report. The 1.84% increase is nearly four times the 25-year average for the month and marks the 14th consecutive month of greater than 1% price growth. The average home has now increased in value by more than 34% since February 2020. All of the markets analyzed by Black Knight experienced double-digit annual home price growth in February 2022. Three-quarters of them saw continued acceleration of appreciation. Home price growth cooled off briefly last fall but reaccelerated in winter despite rising rates. Affordability is now at its lowest ever point outside of 2004-2007. The monthly principal and interest payment…

Share of Young Homebuyers Falls To 10-Year Low

The share of young homebuyers under the age of 30 has dropped below pre-pandemic levels as the affordability crisis prices them out of the market, according to a survey by CoreLogic. Young homebuyers took advantage of historically low-interest rates in 2020, accounting for 22% of homebuyers, a record high for the age group. But the share fell back to pre-pandemic levels in 2021 and further declined at the beginning of 2022.  Controlled for seasonality, the share of young homebuyers in January and February 2022 is at a ten-year low. Markets in the Midwest have a higher portion of young homebuyers than coastal areas. More affordable metros have the highest share as young homebuyers – who typically have lower incomes and…

Morning Roundup (3/30/2022)– Home Prices In Perspective

Good Morning! Today is Wednesday, March 30. US job openings totaled 11.3 million in February, barely budging from January. The F.D.A. authorized a second booster shot for anyone 50 or older. Russian missile strikes destroyed a government building in Mykolaiv, a port city in the south of Ukraine. The Mortgage Note Reports Home Prices In Perspective: Homes are less affordable than they were a year ago, but they largely remain more affordable than at the peak of the 2006 housing boom. Corcoran CIO: Jason Crawford has been appointed Chief Innovation Officer (CIO) of Corcoran Global Living, the company announced. And in other mortgage and housing news… Home Price Appreciation: The S&P Corelogic Case-Shiller Index shows home price appreciation up 19.2% in…

Condo Prices Hit Record High As Shoppers Seek Affordable Options

Condo prices hit a record high– $319,000, up 14.6% YOY and 22.7% from before the pandemic— as buyers priced out of the single-family market turn towards more affordable options, Redfin reported. This is a turn-around from the beginning of the pandemic when American buyers wanted to avoid crowded areas, causing condo sales to drop by 48%.  But as pandemic fears subside and home shoppers face stock shortages and price appreciation in the single-family market, condos are making a comeback. Gen Z in particular is reviving urban hotspots assumed to be dying out due to Covid-19. “Big cities are appealing for a host of reasons—big cities offer diverse job opportunities. Big cities offer many amenities that are not available in smaller…

Pending Home Sales Down For Fourth Consecutive Month

Pending home sales dropped for the fourth month in a row in February, down 4.1% from January and 5.4% YOY, the National Association of Realtors (NAR) reported. NAR’s Pending Home Sales Index (PHSI), which measures home sales using contract signings, fell in three of the major regions. The Northeast was the only region that saw an increase from January.  All four regions saw year-over-year declines. “Pending transactions diminished in February mainly due to the low number of homes for sale. Buyer demand is still intense, but it’s as simple as ‘one cannot buy what is not for sale,'” said Lawrence Yun, NAR’s chief economist.  The Northeast PHSI rose 1.9% to 85.0 in February, down 9.2% YOY. In the Midwest, the…