CoreLogic’s “U.S. Home Price Insights” report, released Tuesday, showed January had the slowest year-over-year growth since August 2012.
Home prices across the county, including distressed sales, rose year over year by 4.4 percent in January 2019 and increased month over month by 0.1 percent in January 2019 from December 2018, according to the report, which analyzed data based on CoreLogic’s home price index.
Colorado had between a 3 to 6 percent increase in year over year home prices, the report showed, with Denver as one of the top 10 metros to increase at 4.8 percent. Las Vegas led the way with a 10.5 percent year over year gain.
The states with the highest year-over-year increases were Idaho at 11.2 percent; Nevada at 10.2 percent and Utah at 8.9 percent. Louisiana and North Dakota were the only states that didn’t experience increases since January 2018, according to the report.
Two other key takeaways from the report:
• Annual home price growth has held steady or slowed each month since April 2018.
• Annual average price growth is forecast to slow in 2019 to 3.4 percent.
“The slowing growth in home prices was inevitable in many respects as buyers pull back in the face of higher borrowing and ownership costs,” Frank Martell, president and CEO of CoreLogic said in the report. “As we head into 2019, we can expect continued strong employment growth and rising incomes which could support a reacceleration in home-price appreciation later this year.”
Meanwhile, the CoreLogic HPI Forecast estimates that home prices will rise by 4.6 percent year-over-over from January 2019 to January 2020, the report stated.
It indicated that on a month-over-over basis home prices will decrease by 0.9percent from January 2019 to February 2019.
The CoreLogic HPI Forecast uses the CoreLogic HPI and other economic variables to project home prices.
“Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state,” the report stated.
Frank Nothaft, chief economist with CoreLogic, said the report that the spike in mortgage rates last fall led to the slowdown in home sales and price growth.
“Fixed-rate mortgage rates have dropped 0.6 percentage points since November 2018 and today are lower than they were a year ago,” he said. “With interest rates at this level, we expect a solid home-buying season this spring.”