Home price appreciation has slowed, or reversed in some markets, though median selling prices remain higher than a year ago.
When compared to states, CoreLogic ranks D.C. last for year-over-year price gains, at 2.4% from August of 2021 to August of this year. Nationally, the annual price gain slowed to 13.5%.
Among large cities, the D.C. metropolitan area also trails behind other metro areas, with a year-over-year gain of 7.1%. CoreLogic forecasts the annual price change in 2023 for the D.C. metro will slow to 3.9%.
“The increased cost of homeownership has dampened buyer demand and caused prices to decelerate at a faster pace than initially expected,” said interim lead of the Office of the Chief Economist for CoreLogic Selma Hepp.
Its forecast predicts annual prices in some of the pandemic’s strongest markets will fall in 2023, with a 1% year-over-year decline in Phoenix, Arizona, and a 1.7% decline in Las Vegas, Nevada.
In August, the D.C. metro median selling prices were up 7.13% from a year ago, slowing from an annual gain of 7.66% in July. Across the District, CoreLogic reports the median selling price in August was down 0.59% from July.
“While decelerating price growth and price declines benefit younger potential homebuyers, mortgage rates that are approaching 7% may cut many hopefuls out of the picture,” said Hepp.
Nationwide, home prices continued a 127-month run of consecutive annual gains, though the annual gain recorded in August was the lowest since April 2021.