Prices will finally rise again in the West: CoreLogic | ET REALITY

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U.S. home price growth rose 2.5% year over year in July, marking the 138th consecutive month of annual growth. The annual acceleration reflects six consecutive monthly gains, which lifted prices about 5% compared to the February low, according to CoreLogicHome Price Index.

“Annual home price growth regained momentum in July, primarily reflecting strong appreciation earlier this year,” said Selma Hepp, chief economist at CoreLogic. “That said, high mortgage rates have curbed further price increases, and monthly increases have returned to regular seasonal averages. In other words, home prices continue to grow but are in line with historical seasonal expectations.”

The 11 states that experienced declines in home prices were all in the West: Idaho (-5.7%), Nevada (-4.2%), Montana (-3.6%), Washington (-3 .3%), Arizona (-2.9%), Utah. (-2.8%), Oregon (-1.2%), Colorado (-0.6%), Texas (-0.6%), Wyoming (-0.5%) and California (-0.3 %).

But as many of those markets continue to struggle with inventory shortages, that trend may be short-lived and recent competition from buyers will drive prices up again.

“The projection of higher and prolonged mortgage rates has affected price forecasts over the next year, particularly in less affordable markets,” Hepp said.

“But since there is still an extreme shortage of inventory in the western United States, home prices in some of those markets should see relatively more upward pressure.”

All states that saw year-over-year losses in July will start posting profits in October, CoreLogic projected.

CoreLogic expects the year-over-year increase in US home prices to reach 3.5% in July 2024.

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Vermont ranked first in annual appreciation in July (up 8.5%), followed by New Hampshire and New Jersey (both up 7.3%)

In June, Miami recorded the largest year-over-year increase in home prices of the 20 tracked metropolitan areas in the country, 9%. St. Louis saw the next largest increase (4.8%), followed by Detroit (4.5%).

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