A report from CoreLogic shows home price appreciation continues higher. According to the report, home prices rose 0.9% in May 2023, and now home prices are up 1.4% year over year nationally.
CoreLogic expects home prices will continue higher and rise by 4.5% over the next 12 months. Based on gains from January 2023 through May 2023, we are on pace for a 10% price increase after prices went down slightly in Q4 2022.
The CoreLogic data is corroborated by Black Knight who explains that home values have erased the losses from the second half of 2022 and have reached an all time high.
According to Black Knight, “There is no doubt that the housing market has reignited from a home price perspective. Firming prices have now fully erased the pullback we tracked through the last half of 2022 and lifted the seasonally adjusted Black Knight Home Price Index (HPI) to a record high in May.”
Black Knight is not as optimistic about the 2023 annual appreciation rate projection as they predict only a 5% appreciation nationally. That is still above the historic average of 4.7% median appreciation annually according to the Federal Housing Finance Agency (FHFA) since 2000.