Home Prices Continue to Grow, but the Rate Is Cooling

Home prices continue to grow across the U.S., although the monthly growth has slowed down, according to CoreLogic’s Home Price Index for May 2024.

CoreLogic data found that home price gains came in at 4.9% year-over-year in May, the 148th consecutive month of annual growth, but lesser than previous months. On a month-over-month basis, home prices increased by 0.6% compared with April 2024.

“While national annual home price growth continues to slow as anticipated, cooling appreciation over the past months is now observed in more markets, as the surge in mortgage rates this spring caused both slowing homebuyer demand and prices,” said Dr. Selma Hepp, chief economist for CoreLogic. “However, persistently stronger home price gains this spring continue in markets where inventory is well below pre-pandemic levels, such as those in the Northeast.”

CoreLogic found that the annual appreciation of detached properties (5.4%) was 2.6% higher than that of attached properties (2.8%).

According to the report, this “likely (indicates) homebuyer preferences for more personal space to work from home after the height of the pandemic, as well as surging HOA fees due to maintenance costs.”

As for metro data, San Diego posted the highest year-over-year home price increase of the country’s 10 highlighted metro areas in May, at 9.2%. Miami saw the next-highest gain at 8.5%.

Among states, CoreLogic found that the Northeast continued to lead the country for annual appreciation. New Hampshire ranked first for annual appreciation in May (up by 12%), followed by New Jersey and Rhode Island (both up by 9.8%). No state recorded a year-over-year home price loss.

“Also, markets that are relatively more affordable, such as those in the Midwest, have seen healthy price growth this spring,” Hepp continued. “On the other hand, markets with notable inventory increases, including those in Florida and Texas, continue to see annual deceleration that is pulling prices below numbers recorded last year.”

CoreLogic’s forecast shows annual home price gains slowing to 3% in May 2025.

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