Home prices surge to new record high in April: CoreLogic

Home prices surged to yet another new all-time high in April, according to the latest report from CoreLogic. 

Home prices surged 20.9% annually in April, marking the 123rd straight month, or more than 10 years, of annual home price gains, according to the CoreLogic Home Price Index (HPI). About 70% of homes sold above asking price during this year’s spring homebuying season. 

"The record growth in home prices is a result of a scarcity of for-sale inventory coupled with eager buyers who want to purchase before mortgage rates go higher," CoreLogic President and CEO Patrick Dodd said. "Most buyers who closed on their home in April had locked in their mortgage rate in February or March when rates were lower than today."

If you are interested in taking equity from your home amid these record home price gains, you could consider taking out a mortgage refinance. Visit Credible to find your personalized interest rate without affecting your credit score.

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Home price growth likely to slow over the next year

Although home prices have surged recently, rising mortgage rates could cause this growth to slow significantly over the next year, according to CoreLogic’s HPI Forecast. It predicted that as homebuyer demand slows in the coming months, annual home price appreciation will decrease to 5.6% by April 2023.

Mortgage rates surged from being below 3% at points in April 2021 to reaching more than 5% by the end of April this year, according to data from Freddie Mac. Higher mortgage rates have caused monthly mortgage payments to rise by 55% for a median-priced home bought this year versus one bought last year, according to Realtor.com. This adds an extra $695 to monthly expenses.

"With 30-year fixed mortgage rates much higher now, we expect to see waning buyer activity because of eroding affordability," Dodd said. "Consequently, our forecast projects slowing price growth over the coming year."

If you want to take advantage of today’s rising home prices, you could consider getting a cash-out mortgage refinance to help you pay down debt or fund home renovation projects. Visit Credible to compare multiple mortgage lenders at once and choose the one with the best interest rate for you.

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These cities have seen the highest home price gains

The average annual home value appreciation across the U.S. was 20.9% in April, and 2.6% on a monthly basis, according to CoreLogic. But the rate of home price growth varied significantly depending on the housing market in individual metro areas.

Similarly to the data from March, Tampa, Fla., showed the highest annual home price growth among the 20 largest metros in the U.S. in April, with 33.1% annual gains. Phoenix came in second with a 29.7% annual gain. 

On the other hand, home price growth was far below average in New York, where it reached 9.8% annually. And at the state level, Flordia, Arizona and Tennessee saw the highest annual gains in April.

If home prices are surging in your area and you want to take cash from the rising value of your home, you could consider a cash-out refinance. To see if this is the right option for you, contact Credible to speak to a home loan expert and get all of your questions answered.

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