US Home Prices Soar By 18% Year-Over-Year

U.S. home prices, including distressed sales, recorded an 18% year-over-year increase in October, according to the latest CoreLogic Home Price Index (HPI) data. This marks the highest recorded annual increase in the HPI’s 45-year history.

On a month-over-month basis, home prices increased by 1.3% from September to October.

What Happened: No states posted an annual decline in home prices during October, while the states with the highest year-over-year increase were Arizona (28.8%), Idaho (28.7%), and Utah (24.5%).

“Single-family detached houses remain the preferred home for buyers during the pandemic,” said Frank Nothaft, chief economist at CoreLogic.

“This is reflected in the 19.5% annual price rise for detached houses, which marks another record-high for the CoreLogic Home Price Index.”

Looking ahead, the CoreLogic HPI Forecast is predicting home prices will increase 2.5% from October 2021 to October 2022 and will register a mild 0.2% uptick from October to November this year.

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What Else Happened: Separately, Realtor.com released its forecast of the Top Housing Markets of 2022, with predictions on listing price appreciation and home sales growth during the new year.

This year’s list is heavily focused on the Mountain West, Midwest and New England, with the top 10 ranked in order as Salt Lake City; Boise, Idaho; Spokane, Wash., Indianapolis; Columbus, Ohio; Providence, R.I.; Greenville, S.C.; Seattle; Worcester, Massachusetts and Tampa.

“The top 10 markets share a number of commonalities that are driving demand from millennial remote workers to retirees alike, including those from major coastal metros,” said Realtor.com Chief Economist Danielle Hale.

“With thriving local economies, low unemployment rates, convenient access to the outdoors and relatively affordable housing, many of the top markets offer the best of both small-town quality of life and big city job security.

“Home shoppers in these areas may still be able to find good value even as listing prices are expected to climb in 2022, but getting a leg up on the competition will be key,” Hale added.

“For buyers with more flexible timelines – such as those making a move from a big city – offering a couple extra months on the closing date could sweeten the deal for sellers who also need to buy their next home.”

Realtor.com is operated by Move, a subsidiary of News Corp NWS NWSA)).

Photo: Dan Moyle/Flickr Creative Commons.