By Mike Sunnucks | Rose Law Group Reporter
Tampa and Phoenix posted the biggest increases in home prices over the past 12 months among major U.S. markets.
That is according to CoreLogic’s Home Price Index for April 2022.
U.S. home prices increased 20.9% in April 2022, compared to April 2021 and by 2.6% compared to March 2022.
Tampa posted the highest year-over-year home price increases among the 20 largest U.S. metro areas in April, at 33.1%. Phoenix ranked second, with a 29.7% year-over-year gain.
At the lower end of the price gains, New York City posted a 9.8% price gain. The city has lost population in recent years.
CoreLogic said approximately 70% of U.S. homes are selling for more than their asking price.
The real estate group expects higher interest rates imposed to curtail 40-year highs with inflation will slow home values appreciate to 5.6% by April 2023.
“The record growth in home prices is a result of a scarcity of for-sale inventory coupled with eager buyers who want to purchase before mortgage rates go higher,” said Patrick Dodd, president and CEO at CoreLogic. “Most buyers who closed on their home in April had locked in their mortgage rate in February or March when rates were lower than today. With 30-year fixed mortgage rates much higher now, we expect to see waning buyer activity because of eroding affordability. Consequently, our forecast projects slowing price growth over the coming year.”
At the state level, Florida, Arizona and Tennessee posted the biggest price gains between April 2022 and April 2023 with growth of 32.4%, 28.1% and 27.2%, respectively.
Florida markets such as Miami, Orlando, Sarasota and Fort Myers have seen significant price growth with home values and apartment rents.