Year over year, U.S. single-family home prices rose to 3.9% in August, the lowest rate of growth recorded since last July.
IRVINE, Calif. – Home price growth moved up to nearly 4% year over year in August, though gains are projected to fall to less than 1% by next spring, according to the CoreLogic Home Price Index (HPI) and HPI Forecast for August 2024.
Mortgage rates dropped to the lowest level in nearly two years the last week of September, according to Freddie Mac, but weakening consumer confidence over the job market and uncertainty around the November election could be keeping price growth expectations muted.
“While mortgage rates have dropped in recent weeks, August home sales were by still-high rates in July and August, which lowered affordability,” said Dr. Selma Hepp, Chief Economist for CoreLogic.
“The combined impact of high prices and high mortgage rates kept a lid on price growth, with annual gains falling to the lowest level in a year and the monthly gain falling well below what is typically observed in August. Price gains in August were driven by areas in the Northeast but brought down by softening markets in Texas and Florida.“
Top takeaways:
- U.S. single-family home prices (including distressed sales) increased by 3.9% year over year in August 2024 compared with August 2023. On a month-over-month basis, home prices decreased by 1% compared with July 2024.
- In August, the annual appreciation of detached properties (4.2%) was 4 percentage points higher than that of attached properties (-0.2%).
- CoreLogic’s forecast shows annual U.S. home price gains relaxing to 2.3% in August 2025.
- Miami posted the highest year-over-year home price increase of the country’s 10 highlighted metro areas in August, at 8.9%. Chicago saw the next-highest gain at 6.8%.
- Among states, South Dakota ranked first for annual appreciation in August (up by 10%), followed by New Jersey (up by 9.5%). Hawaii was the only state to record a year-over-year home price loss (-0.1).
Source: CoreLogic
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