IE Business Daily Business news for the Inland Empire.
U.S. single-family home prices grew 6.9 percent in December, the lowest rate of year-over-year growth since the summer of 2020, a report released today stated.
That slowdown is being blamed primarily on high mortgage rates and general pessimism about the economy’s immediate future, according to CoreLogic in Irvine.
Despite a 3.5 percent unemployment rate, layoffs in some communities – particularly ones with a lot of tech jobs – may have had a disproportionate impact on the housing numbers.
“Some exurban regions that became increasingly popular during the COVID-19 pandemic saw prices jump and affordability erode at the time,” said Selma Hepp, Core Logic’s chief economist, in a statement. “But these areas are seeing major corrections.”
The drop in price growth will likely continue through this spring and reach three percent by the end of the year, according to the report.
Single-family home prices fell 0.4 percent between November and December.
In the Inland Empire, single-family home prices, including distressed properties, grew 5.3 percent in December from exactly one year earlier, CoreLogic reported.
