Housing prices are expected to dip, according to a new report from CoreLogic Home Price Insights. The Home Price Index considers the impact of economic and global forces that may have a bearing on the real estate market. 

As of November 2022, the average home price had increased year over year by 8.6 percent. This figure, however, reflects a month-over-month decline of 0.2 percent in November 2022 as compared to October 2022. 

Researchers at CoreLogic believe that home prices will continue to decrease on a month-over-month basis heading into 2023 by 0.1 percent. It’s believed that year over year the rate of decrease will reach 2.8 percent. 

After nearly 21 months of double-digit growth, the growth in home prices fell in November, to the lowest rate of appreciation in two years. Southeastern states continued to see some growth, however, other regions of the country began seeing sharp declines. 

Selma Hepp, executive, deputy chief economist for CoreLogic, said, “Although home price growth has been slowing rapidly and will continue to do so in 2023, strong gains in the first half of last year suggest that total 2022 appreciation was only slightly lower than that recorded in 2021. However, 2023 will present its own challenges, as consumers remain wary of both the housing market and the overall economic outlook.” 

Increases were found in states like Florida which saw home prices rise by 18 percent, South Carolina with a rise of 13.9 percent and Georgia at 13.6 percent. 

Areas like Urban Honolulu, Salem, Oregon and Bellingham, Washington were all expected to see a decline in growth of between 50 percent and 75 percent. 

“While the recent decline in mortgage rates may bode well for the housing market, potential homebuyers are grappling with the idea of buying amid possible further price declines and a continued inventory shortage, said Hepp “Nevertheless, with slowly improving affordability and a more optimistic economic outlook than previously believed, the housing market could show resilience in 2023.”