U.S. annual home price growth for October 2021 remained strong at 18% in October— the highest recorded in the 45-year history of CoreLogic’s Home Price Index (HPI™). However, monthly price growth has slowed from its April peak, signaling a continued slowdown in the coming months.
The findings:
- U.S. home prices increased 18% in October YoY. Month-over-month, they increased by 1.3%.
- Appreciation of detached properties (19.5%) was 6.6 percentage points higher than attached properties (12.9%).
- CoreLogic expects home price gains to slow to a 2.5% increase by October 2022.
- Twin Falls, Idaho had the highest YoY home price increase at 35.8%. For the first time in 2021, Florida made it to the top of the list for home price gains, with Naples ranking in the second spot with a 33.5% YoY increase.
- The Mountain West continued to dominate the top spots, with Arizona and Idaho again leading the way with the strongest price growth at 28.8% and 28.7%, respectively, and Utah ranking third at 24.5%.
The takeaway:
“New household formation, investor purchases and pandemic-related factors driving demand for the limited supply of available for-sale homes continues to propel the upward spiral of U.S. home prices,” said Frank Martell, president and CEO of CoreLogic, in a statement. “However, we expect home price growth to moderate over the near term as many buyers take a break for the holidays.”
“Single-family detached houses remain the preferred home for buyers during the pandemic,” said Dr. Frank Nothaft, chief economist at CoreLogic, in a statement. “This is reflected in the 19.5% annual price rise for detached houses, which marks another record-high for the CoreLogic Home Price Index.”
