PROVIDENCE – The Rhode Island home price index increased 15.3% year over year in July, just slightly slower than the national growth rate of 15.8%, CoreLogic Inc. said on Tuesday.
Rhode Island’s HPI growth rate was the third-highest in New England, with Vermont leading the region at 17.7%.
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The report found that as 30-year, fixed-rate mortgages neared 6% this summer nationally, some prospective homebuyers pulled back, helping ease overheated and unsustainable price growth.
Looking ahead, CoreLogic expects to see a more balanced housing market, with year-over-year appreciation slowing to 3.8% by July 2023.
“Following June’s surge in mortgage rates and the resulting dampening effect on housing demand, price growth is taking a decisive turn,” said Selma Hepp, interim lead of the Office of the Chief Economist at CoreLogic. “And even though annual price growth remains in double digits, the month-over-month decline suggests further deceleration on the horizon. The higher cost of homeownership has clearly eroded affordability, as inflation-adjusted monthly mortgage expenses are now even higher than they were at their former peak in 2006.”
On a month-over-month basis, home prices nationally declined by 0.3% in July compared with June.
The year-over-year growth rate of the home price index in other New England states:
- New Hampshire 15.5%
- Maine: 15.5%
- Connecticut: 13.5%
- Massachusetts: 11.1%.
