CoreLogic: R.I. home price index up 7.7% Y/Y in December

THE RHODE ISLAND home price index increased 7.7% year over year in December, slightly higher than the national growth rate of 6.9%, CoreLogic Inc. says. / PBN FILE PHOTO
THE RHODE ISLAND home price index increased 7.7% year over year in December, slightly higher than the national growth rate of 6.9%, CoreLogic Inc. says. / PBN FILE PHOTO

PROVIDENCE – The Rhode Island home price index increased 7.7% year over year in December, slightly higher than the national growth rate of 6.9%, CoreLogic Inc. said Tuesday. 

Rhode Island’s HPI growth rate was the fourth highest in New England, with Vermont leading the region at 13.5%. 

The report found that while the national unemployment rate remained at a low 3.5% in December, according to the U.S. Bureau of Labor Statistics, layoffs may be affecting housing demand in some expensive metro areas, particularly those that rely heavily on the tech industry. San Francisco and Seattle posted significant home price deceleration in November. Idaho was the only state to register an annual home price loss in December of 1%, compared with its 17% gain recorded in April 2022.

Also, pandemic-induced migration to suburban, exurban and rural areas may be winding down, as part of the U.S. workforce gradually returns to offices, according to the report.

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“The continued slowing of home prices at the end of 2022 reflects weaker housing market demand, primarily caused by higher mortgage rates and a more pessimistic economic outlook in general,” said Selma Hepp, chief economist at CoreLogic. “But while prices continued to fall from November, the rate of decline was lower than that seen in the summer and still adds up to only a 3% cumulative drop in prices since last spring’s peak.

“Some exurban regions that became increasingly popular during the COVID-19 pandemic saw prices jump and affordability erode at the time, but these areas are now seeing major corrections,” Hepp said. “And while price deceleration will likely persist into the spring of 2023, when the market will probably see some year-over-year declines, the recent decrease in mortgage rates has stimulated buyer demand and could result in a more optimistic homebuying season than many expected.”

The year-over-year growth rate of the home price index in the New England states:

  • Vermont: 13.5%
  • Maine: 11.4%
  • Connecticut: 9%
  • New Hampshire: 9%
  • Rhode Island: 7.7%
  • Massachusetts: 5.3%.

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