Home prices rose 19.1% annually in January, the highest level of increase since 1976, according to the latest Home Price Index from CoreLogic.
This growth is also more than double than that of January 2021, when home prices grew just 9.4% annually. And on a monthly basis, home prices rose by 1.4% from December to January, according to the report.
Growth in property values varied across different housing types. Detached properties had an annual median sales price appreciation of 20.3% in January. This was higher than that of attached properties such as duplexes, which saw their values rise by 15.2%.
Homeowners can take advantage of rising real estate values through a cash-out refinance while interest rates remain low. You can visit Credible to find your personalized interest rate without affecting your credit score.
Home price growth to slow in 2022 but remain elevated
In the year ahead, home prices will continue to rise amid low inventory but at a slower rate, according to the report. Home price gains are projected to slow to a 3.8% annual gain by January 2023. However, double-digit annual home price increases are still projected for at least the first seven months of 2022.
"In December and January, for-sale inventory continued to be the lowest we have seen in a generation," CoreLogic Chief Economist Frank Nothaft said. "Buyers have continued to bid prices up for the limited supply on the market. However, the rise in mortgage rates since January further eroded buyer affordability and is expected to slow price gains in coming months."
If you want to take money out of your home as its value rises, while also potentially lowering your monthly mortgage payments, you could consider a cash-out refinance. Visit Credible to compare multiple mortgage lenders at once and choose the one with the best rate for you.
Arizona shows highest home price gains
While every state had annual home price growth in January, it was the strongest in Arizona, where home prices rose 28.3% year-over-year, according to CoreLogic. This was followed by Florida with 27.9% annual growth and Utah with 25.2% growth.
Alternatively, Washington D.C. saw the lowest home price gains in the nation, at just 3.8%.
The state with the greatest growth acceleration was Florida, rising from 8.8% in January 2021 to 27.9% in January 2022. However, Washington D.C., Connecticut, Maine and Alaska all saw a slowdown in annual appreciation.
If you are interested in pulling cash from your home for a home improvement project or to pay off high-interest debt, you can contact Credible to speak to a home loan expert and see if a cash-out refinance could be right for you.
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