Thursday, July 18, 2024

CoreLogic Reports Slowing U.S. Home Price Gains in May 2024

by BIZ Magazine

Irvine, CA – CoreLogic®, a leading global property information, analytics, and data-enabled solutions provider, has released its Home Price Index (HPI™) and HPI Forecast™ for May 2024, revealing a slight slowdown in year-over-year home price gains across the United States.

In May 2024, U.S. home prices increased by 4.9% compared to May 2023. This marks the 148th consecutive month of annual growth, though the pace of appreciation has decelerated. Detached homes saw an annual appreciation rate of 5.4%, significantly higher than the 2.8% recorded for attached properties. The monthly home price growth from April to May was 0.6%.

“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.”

Regional Highlights

The Northeast region led the country in annual home price appreciation, with New Hampshire being the only state to post a double-digit increase at 12%. New Jersey and Rhode Island followed closely with 9.8% increases. Conversely, markets with significant inventory increases, such as Florida and Texas, saw price growth decelerate, pulling prices below last year’s levels.

Metro Area Performance

San Diego experienced the highest year-over-year home price increase among the top 10 metro areas, with a 9.2% gain. Miami followed with an 8.5% increase, reflecting robust demand in these areas.

Market Projections

CoreLogic’s forecast predicts a moderation in annual home price gains, projecting a 3% increase by May 2025. This forecast is based on CoreLogic’s sophisticated econometric models, which account for various economic factors, including real disposable income per capita and market momentum.

Methodology

The CoreLogic HPI™ leverages over 45 years of repeat-sales transactions, providing a comprehensive analysis of home price trends across various market segments. The HPI is designed to offer early indications of home price trends, covering both single-family attached and detached properties. CoreLogic’s methodologies ensure accurate and timely updates, incorporating new data with each monthly release.

About CoreLogic

CoreLogic is a leading provider of property insights and innovative solutions, dedicated to transforming the property industry with a focus on human-centered experiences. Through its extensive network, advanced technology, and analytical expertise, CoreLogic aims to build better relationships, strengthen businesses, and create a more resilient society.

For more information, visit www.corelogic.com.

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