Weekly Market Update October 3, 2022

Annual Home Price Appreciation Slowing But Still Significant

CoreLogic released their Home Price Index report for August, showing that home prices declined by 0.7% from July, but they were 13.5% higher compared to August last year. This annual reading declined from 15.8% in July but is still significant. More importantly, CoreLogic forecasts that home prices will stay flat from August to September and appreciate 3.2% in the year. What’s the bottom line? Remember that 3% appreciation can still be meaningful for wealth creation. For example, if someone bought a $400,000 home and put 10% down, they would gain $12,000 in appreciation over the next year and earn a 30% return on their investment due to leverage.