Home Prices Cool; Annual Growth Now Below 5%

According to a new report from CoreLogic, annual home price gains have dipped below the 5% mark for the first time since October while monthly gains posted a 0.6% growth rate, a number that is in line with statistics from before the pandemic. 

The data also showed that all 50 states saw home prices grow, ranging from 0.9% in Louisiana to 12% in New Hampshire. This marks the 148th consecutive month of annual home price growth. 

CoreLogic further stated that the Northeast continued to lead the country for annual appreciation, with New Hampshire the only state to post a double-digit increase. Meanwhile, the price growth gap between detached homes and attached homes further widened, likely indicating 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. 

“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.” 

“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.” 

Top takeaways from the report

  • U.S. single-family home prices (including distressed sales) increased by 4.9% year over year in May 2024 compared with May 2023. On a month-over-month basis, home prices increased by 0.6% compared with April 2024. 
  • In May, the annual appreciation of detached properties (5.4%) was 2.6 percentage points higher than that of attached properties (2.8%). 
  • CoreLogic’s forecast shows annual U.S. home price gains relaxing to 3% in May 2025. 
  • 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, 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. 

Click here for the HPI report in its entirety. 

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Kyle G. Horst

Kyle G. Horst is a reporter for MortgagePoint. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at kyle.horst@thefivestar.com.
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