After a summer of stagnant home price growth, experts say home prices are expected to rise at a muted pace, reaching a peak next spring.
Nationwide, home prices increased in October, showing a 3.4% year-over-year increase. On a month-over-month basis, home prices increased by 0.02% from September to October.
These statistics released in CoreLogic’s latest forecast also predict that home prices will drop by -0.03% on a month-over-month basis (from October to November 2024) and increase by 2.4% on a year-over-year basis from October 2024 to October 2025.
The current median sales price for single-family homes is $385,000, and according to a forecast by CoreLogic, it is expected to reach a new peak in April 2025.
“Similar to much of the housing market activity, home prices continued to mostly move sideways in October,” said Dr. Selma Hepp, chief economist for CoreLogic. “A slight home price bump after a late summer decline reflects the rebound in home-buying demand resulting from a short but effective decline in mortgage rates in August.”
The states with the highest year-over-year price increases were New Jersey, Rhode Island and New Hampshire, rising 8.1%, 7.5% and 6.3%, respectively. Hawaii was the only state to post an annual home price decline.
In the top 10 metro areas, Chicago had the highest gain, at 6.4% year-over-year. Miami increased 6.2% and Las Vegas increased by 5.6%.
CoreLogic released its monthly Market Risk Indicator (MRI) and shared the top markets at risk of home price decline, with a level of risk above 70%. The top markets at risk are Provo-Orem and Salt Lake City in Utah; Atlanta-Sandy Springs-Rowsell, Georgia; Tucson, Arizona and Palm Bay-Titusville-Melbourne, Florida.
For the full report, click here.
