“Home price appreciation continued to push forward in November, despite the new highs in mortgage rates seen over the year,” CoreLogic chief economist Selma Hepp said in the report. “And while the annual growth reflects comparisons with last year’s declines, seasonal gains remain in line with historical averages.
“This continued strength remains remarkable amid the nation’s affordability crunch but speaks to the pent-up demand that is driving home prices higher. Markets where the prolonged inventory shortage has been exacerbated by the lack of new homes for sale recorded notable price gains over the course of 2023.”
The HPI report showed that areas in the Northeast, South, and Midwest were experiencing the strongest price increases, attributed mainly to their relative affordability, which continues to drive demand. These markets, which lagged in price growth during the pandemic, benefited from recent job gains bolstered by legislative measures like The Inflation Reduction Act and the CHIPs Act.
However, areas in the Mountain West and Northwest saw a larger seasonal slump due to the impact of higher interest rates on homebuyer budgets.
Key findings from the report include:
Source: mpamag.com