TAMPA, Fla. — Home prices continued to soar in May with Tampa, Florida leading the nation in largest gains, the CoreLogic Home Price Index and HPI Forecast found.
According to the HPI, home prices in the U.S. grew for the 16th consecutive month with 13 states posting gains of more than 20 percent. Florida and Tennessee posted the highest home price gains at 33.2% and 27.4% respectively.
In Tampa, in a year-over-year analysis, home prices spiked 33.4% in May, far outpacing the second-largest hike in Phoenix at 28.7 percent. Both Tampa and Phoenix also saw the largest gains in March and April.
If home buyers wanted some possibly good news, home prices increased 1.8% on a month-over-month basis, the HPI found. The HPI Forecast found that annual U.S. home price gains will slow to 5% by May 2023 due to rising mortgage rates and affordability challenges.
“With monthly mortgage expenses up about 50% from only a few months ago, fewer buyers are now competing for continually limited inventory," said Selma Hepp, deputy chief economist at CoreLogic. "And while annual home price growth still exceeds 20%, we expect to see a rapid deceleration in the rate of growth over the coming year. Nevertheless, the normalization of overheated buying conditions should bring about more of a balance between buyers and sellers and a healthier overall housing market.”