The latest data from CoreLogic suggests that home prices will be heating up again. In January, home value growth was the slowest in seven years, up 4.4 percent annually.
January's home price gains year-over-year were less than in December, with a 4.7 percent annual growth rate. The recent peak was in April 2018, 6.6 percent. Frank Nothaft, chief economist for CoreLogic, tells CNBC, "The spike in mortgage interest rates last fall chilled buyer activity and led to a slowdown in home sales and price growth," since November 2018, "Fixed-rate mortgage rates have dropped 0.6 percentage points, and today are lower than they were a year ago. With interest rates at this level, we expect a solid homebuying season this spring."
So that could mean the end of the current price chill, as more buyers this spring compete for a still-slim supply of listings for sale. Inventories have started to rise nationwide, but mostly on the higher end of the market, which is not where the bulk of current demand is. The supply of entry-level homes for sale is still very, very low, as builders continue to focus on more expensive homes, given today's high costs for land and labor.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development
