Home price growth moved up to 2.5% year-over-year in July, the 138th consecutive month of annual growth, according to a new report from CoreLogic.
CoreLogic’s latest Home Price Index for July found that after two months of 1.6% annual gains, annual reacceleration reflects six consecutive monthly gains, which drove prices about 5% higher compared to the February low.
In addition, while 11 states in the West saw declines, CoreLogic projects that all states that saw year-over-year losses in July will begin posting gains by October of this year.
Key highlights:
- On a month-over-month basis, home prices rose by 0.4% compared with June.
- The annual appreciation of attached properties (3%) was 0.6 percentage points higher than that of detached properties (2.4%).
- CoreLogic’s forecast shows annual U.S. home price gains increasing to 3.5% by July 2024.
- Miami posted the highest year-over-year home price increase of the country’s 20 tracked metro areas in June, at 9%. St. Louis saw the next-highest gain (4.8%), followed by Detroit (4.5%).
- The median sales price for a single-family home was $375,000, led by California ($700,000), the District of Columbia ($670,000) and Massachusetts ($590,000).
- Among states, Vermont ranked first for annual appreciation in July (up by 8.5%), followed by New Hampshire and New Jersey (both up by 7.3%).
- Eleven states recorded annual home price losses: Idaho (-5.7%), Nevada (-4.2%), Montana (-3.6%), Washington (-3.3%), Arizona (-2.9%), Utah (-2.8%), Oregon (-1.2%), Colorado (-0.6%), Texas (-0.6%), Wyoming (-0.5%) and California (-0.3%).
Major takeaway:
“Annual home price growth regained momentum in July, which mostly reflects strong appreciation from earlier this year,” said Selma Hepp, chief economist for CoreLogic. “That said, high mortgage rates have slowed additional price surges, with monthly increases returning to regular seasonal averages. In other words, home prices are still growing but are in line with historic seasonal expectations.”
“Nevertheless, the projection of prolonged higher mortgage rates has dampened price forecasts over the next year, particularly in less-affordable markets,” Hepp continued. “But as there is still an extreme inventory shortage in the Western U.S., home prices in some of those markets should see relatively more upward pressure.”
For the full report, click here.
