IE Business Daily Business news for the Inland Empire.
U.S. home prices grew 20.2 percent in May compared with May 2021, the 16th consecutive month home prices have posted double-digit growth year-over-year.
Thirteen states recorded home price growth of more than 20 percent between May of 2021 and May of this year, while prices increased nearly two percent between April and May, CoreLogic in Irvine reported.
However, rising interest rates and higher mortgages are expected to reduce price growth to five percent by next year.
“With monthly mortgage expenses up about 50 percent from only a few months ago, fewer buyers are now competing for a limited inventory,” said Selma Hepp, CoreLogic’s deputy chief economist, in the statement. “While annual home price growth still exceeds 20 percent, we expect to see a rapid deceleration in the rate of growth over the coming year.”
If that trend happens during the next 12 months, the result will be a “better balance” between buyers and sellers and a stronger housing market, Hepp said.
In the Inland Empire, single-family home prices, including distressed properties, grew 23.5 percent in May. Counting distressed properties – anything in some state of foreclosure – that number was 22.9 percent, according to CoreLogic.
