Record-breaking growth projected to slow by December
Home prices in the US increased at an average pace of 15% for the full year of 2021, according to the latest CoreLogic Home Price Index.
The index showed that home price growth kicked off at 10%, steadily increasing and ending the year with an 18% gain for the fourth quarter.
In December, 12-month growth was 18.5% nationwide, while month-over-month appreciation was 1.3% higher than November.
The record-breaking growth has raised concerns about whether the market is currently in a housing bubble. But CoreLogic Market Risk Indicators suggest there’s only a small chance that prices nationwide may moderate this year.
Still, the CoreLogic HPI Forecast shows the national annual price appreciation steadily slowing over 2022. It’s expected to hover above 10% during the first few months while decelerating each month to a 12-month rise of 3.5% by December.
“Much of what we’ve seen in the run-up of home prices over the last year has been the result of a perfect storm of supply and demand pressures,” said CoreLogic chief economist Frank Nothaft. “As we move further into 2022, economic factors – such as new home building and a rise in mortgage rates – are in motion to help relieve some of this pressure and steadily temper the rapid home price acceleration seen in 2021.”
Naples, Fla. posted the highest annual increase in December at 37.6%, followed by Gorda, Fla. at 35.7%.
