Annual home price growth dipped to 6.9% in December, down from a series high of 20% appreciation in April, according to CoreLogic. Prices declined by 0.4% over November figures — and the firm predicts annual US home price gains will slow to 3% by December 2023.

Just nine states posted double-digit year-over-year price gains at the end of last year, compared to 48 that registered such growth in April. And layoffs — or the specter of layoffs — may also be affecting home prices and demand in cities like San Francisco and Seattle, both of which posted significant home price deceleration in November. And Idaho was the only state to register an annual home price loss in December (-1%), compared with its 17% gain recorded in April 2022.

"The pandemic-induced migration to suburban, exurban and rural areas may be winding down, as part of the U.S. workforce gradually returns to offices," CoreLogic analysts note in a report breaking down the firm's Home Price Index and forecast for December 2022.