CoreLogic’s Home Price Index showed that home prices nationwide fell by 0.2% from December to January but they were 5.5% higher when compared to January of last year. This annual appreciation reading declined from 6.9% in December but is still solid. CoreLogic forecasts that home prices will drop 0.1% in February but rise 3.1% in the year going forward.

What’s the bottom line? CoreLogic’s Chief Economist Selma Hepp said that “the continued shortage of for-sale homes is likely to keep price declines modest, which are projected to top out at 3% peak to trough.” This is a far cry from a housing crash of 20% that some in the media have been predicting.

And while CoreLogic has reported slightly negative readings month to month, they still forecast 3.1% appreciation nationwide over the next year, which can 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.