Single-family home prices increased by 5.2% year-over-year in November, the strongest annual growth rate recorded since January 2023, according to a new report from CoreLogic.
CoreLogic’s latest Home Price Index for November found that the more affordable areas in the Northeast, South and Midwest posted the strongest home price increases. Many of the nation’s current fastest-appreciating real estate markets lagged in price growth during the pandemic but have recently benefited from job gains.
Key highlights:
- On a month-over-month basis, home prices rose by 0.2% compared with October 2023.
- The annual appreciation of detached properties (5.4%) was 1 percentage point higher than that of attached properties (4.4%).
- CoreLogic’s forecast shows annual U.S. home price gains slowing to 2.5% in November 2024.
- Detroit posted the highest year-over-year home price increase of the country’s 20 tracked metro areas in November, at 8.7%.
- Miami saw the next-highest gain Among states, Rhode Island ranked first for annual appreciation in November (up by 11.6%), followed by Connecticut (up by 10.6%) and New Jersey (up by 10.5%).
- Idaho (-1.3%), Utah (-0.4%) and Washington, D.C. (-0.2%) recorded year-over-year home price losses.
Major takeaway:
“Home price appreciation continued to push forward in November, despite the new highs in mortgage rates seen over the year,” said Dr. Selma Hepp, chief economist for CoreLogic. “And while the annual growth reflects comparison with last year’s declines, seasonal gains remain in line with historical averages. However, in some metro areas, such as those in the Mountain West and the Northwest, higher interest rates are having a greater impact on homebuyers’ budgets, which is contributing to a larger seasonal slump.
Hepp concluded, “This continued strength remains remarkable amid the nation’s affordability crunch but speaks to the pent-up demand that is driving home prices higher. Markets where the prolonged inventory shortage has been exacerbated by the lack of new homes for sale recorded notable price gains over the course of 2023.”
For the full report, click here.
