Despite challenges such as elevated mortgage rates and rising property taxes, national home price appreciation was strong in 2024, with a year-over-year increase of 3.4% recorded through October. However, there’s a predicted slowdown in growth for 2025, with CoreLogic forecasting a 2.4% rise in home prices over the next year. This shift emphasizes how external economic factors can impact momentum in the housing market.
Selma Hepp, the chief economist at CoreLogic, noted that higher mortgage rates and an increase in inventory levels will likely stall the rate of home price appreciation. She remarked that, although 2024 experienced strong price growth, expectations for 2025 have been downgraded. This highlights the importance of market conditions and inventory on future growth trajectories.
CoreLogic emphasizes the significance of comparing current home prices to previous year levels, particularly during the spring homebuying season. According to Hepp, the appreciation noted last year was notably high, which sets the context for expected flat growth in that period this year. This context is crucial for understanding the overall trends and forecasts in the housing market.
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