Single-family home prices rose 2.2% from January to February, making for a record 20% gain over the previous 12 months, according to the CoreLogic Home Price Index released Tuesday—the fourth record-setting month in a row in data going back to 1976.Forecasters at CoreLogic, a real estate data company, expect those increases to slow down as the year goes on, so that by February 2023, prices will only be 5% higher than they are now. CoreLogic’s index—not to be confused with the widely-watched S&P CoreLogic Case-Shiller Home Price Index that lags behind a month—paints a relatively unyielding picture of the housing market, despite predictions that rapidly rising mortgage rates will dampen the appeal of buying a home and ultimately cool the extreme seller’s market. Buyers are still competing for a record-low number of homes for sale, driving up prices, CoreLogic said. “New listings have not kept up with the large number of families looking to buy, leading to homes selling quickly and often above list price,” Frank Nothaft, chief economist for CoreLogic, said in a report. But as higher prices and rising mortgage rates make homes less affordable, it “should dampen demand in coming months, leading to the moderation in price growth in our forecast.” Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
