Home price growth slowed in June, but remained near historic highs, according to the latest CoreLogic Home Price Index (HPI).
Home prices surged by 18.3% annually in June, marking the 125th consecutive month of annual increases, according to the report. However, this also marked the second consecutive month that home price growth slowed from all-time high levels.
And this deceleration could continue over the coming months. CoreLogic predicted that home price growth will slow to 4.3% year-over-year by June 2023.
"Signs of a broader slowdown in the housing market are evident, as home price growth decelerated for the second consecutive month," Selma Hepp, CoreLogic's interim lead of the office of the chief economist, said.
"This is in line with our previous expectations and given the notable cooling of buyer demand due to higher mortgage rates and the resulting increased cost of homeownership," Hepp said. "Nevertheless, buyers remain interested, which is keeping the market competitive – particularly for attractive homes that are properly priced."
On a monthly basis, home prices increased by 0.6% from May to June, according to CoreLogic’s report.
If you are interested in taking advantage of your increased home value, you could consider taking out a cash-out refinance. Visit Credible to find your personalized interest rate without affecting your credit score.
These cities saw the strongest home price growth
When it came to annual home price gains, some metro areas saw much higher increases in June than the 18.3% national average, CoreLogic said.
Out of the largest 20 metros in the U.S., Tampa, Florida, once again had the highest annual home price gain at 32.6%. Phoenix rose to the second slot with 26.1%. But both of these metros had a lower annual growth rate in June than in May.
When looking at states, Florida homes had the highest annual gains at 31.8%, followed by Tennessee at 25.8% and Arizona in third with 24.9%. Washington, D.C. saw the slowest growth at just 3.4% annually.
If you are interested in taking cash out of your home to pay down debt or to fund home improvement projects, you could consider a cash-out refinance. Visit Credible to compare multiple mortgage lenders at once and choose the one with the best interest rate for you.
How to capitalize on your higher home value
With home prices surging at high annual levels, there are several ways that homeowners can capitalize on their increased home value. For example, homeowners who sell their home in today’s market could see significant profits, even those who bought their home as recently as last year.
Homeowners can also refinance their mortgage loan, using a cash-out refinance to withdraw funds from their home. If homeowners lengthen their loan term or lower their interest rate, they could also reduce their monthly mortgage payment while pulling cash out of the home.
If you are interested in discovering your mortgage options, contact Credible to speak to a home loan expert and get all of your questions answered.
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