The housing market stayed red hot and prices continued their climb in February, according to the latest CoreLogic Home Price Insight report..(CoreLogic)
- Y-O-Y: Home prices nationwide increased by 20% year-over-year in February 2022.
- M-O-M: Home prices jumped an astounding 2.2% month-over-month in February 2022.
In February, Florida just barely beat out Arizona for the top spot among all states for homes price growth with 29.1% year-over-year gains in February…
- Arizona, as mentioned, was a close second at 28.6% followed by Nevada (+25.8%), Utah (+25.5%), and Tennessee (+25.4%).
Arizona may have missed the top spot but they do have the fastest growing city. Phoenix continues to hold the top spot with 30.4% year-over-year growth in February
- Las Vegas took the number two spot with 26.5% growth followed by San Diego (+25.2%), Denver (+20.4%), and Miami (+19.5%).
THE FUTURE: Looking forward, CoreLogic projects that month-over-month growth will fall to 0.6% in March and year-over-year growth will fall to 5.0% in February 2023.
If I had to guess, looking at this data along with real-world experience, I would bet price growth will peak in March or April. After that, we will finally start to see that decline that we witnessed briefly at the end of 2021. One of the unfortunate stats was the lowest-priced homes saw the biggest year-over-year gains. They jumped 21.2%, which is not significantly higher than the other price tiers, but that income level is the most sensitive to price hikes. This means more people are being priced out of the housing market as home prices and rates rise significantly.