Good news for homeowners in New Jersey — home-price growth in the Garden State in June was the highest in the nation, according to real-estate data company CoreLogic.
Despite having the highest property taxes in the nation, New Jersey ranked first as its homes rose in value by 6.9% in June year-over-year. Nationally, home prices grew 1.6% on the year in June, the CoreLogic Home Price Index said.
Several housing markets in the Northeast gave a strong performance in June, CoreLogic said. New Jersey was followed by New Hampshire and Vermont, which both saw home prices grow by 6.4%. CoreLogic expects home prices nationally to increase to 4.3% by June 2024.
Home prices fell the most in June 2023 as compared to June 2022 in the West, led by Idaho where values fell by 8%. Washington and Montana followed, with home prices falling 5.8% and 5.7% respectively. Homes in California saw their values fall by 2.2% from June.
“‘While the continued imbalance between buyers and sellers continues to pressure home prices, June’s annual bump in price growth echoes economic resiliency, a thriving U.S. job market and strong consumer spending.’”
“While the annual losses reflect last year’s declines, many West Coast markets are expected to see a strong rebound in prices over the next year,” CoreLogic stated.
Homes in California were also some of the most expensive in the nation.
The U.S. housing market is currently facing a supply-and-demand crisis. Home buyers across the U.S. are struggling with a major lack of home listings, as homeowners find few reasons to sell their houses. But demand continues to hold strong, despite the 30-year mortgage rate hovering at 7%.
“While the continued imbalance between buyers and sellers continues to pressure home prices, June’s annual bump in price growth echoes economic resiliency, a thriving U.S. job market and strong consumer spending,” Selma Hepp, chief economist for CoreLogic, said in a statement.
“And while higher rates are impacting affordability for buyers with loans, almost 4 in 10 sales are all-cash transactions,” she noted.
Not to mention the fact that many baby boomers who own their home “have substantial equity,” he added, “which could be putting pressure on prices in markets where that generation is currently migrating.”
CoreLogic also noted that the top real-estate markets at risk of home-price declines included the Cape Coral-Fort Myers metro, the North Port-Sarasota-Bradenton metro, both in Florida, and the Provo-Orem metro in Utah.