CoreLogic: US Home Prices Increased 5.3% Year-over-year in April

by Calculated Risk on 6/04/2024 08:00:00 AM

Notes: This CoreLogic House Price Index report is for April. The recent Case-Shiller index release was for March. The CoreLogic HPI is a three-month weighted average and is not seasonally adjusted (NSA).

From CoreLogic: CoreLogic: Monthly US Home Price Gains Dip Below Seasonal Average in April

U.S. year-over-year single-family home price appreciation was 5.3% in April, the same as in March.

• All states posted annual appreciation in March, led by New Hampshire (12%), New Jersey (11%) and South Dakota (10.8%).

• Of the 10 tracked major U.S. metro areas, San Diego (9.9%) overtook Miami (9.7%) for the top spot.

Annual U.S. home price appreciation remained above 5% in April, with three states posting double-digit gains. By next spring, national price gains are projected to slow to 3.4%, with only a few states putting up increases of higher than 6%. This slow cooling reflects not only the increasing number of homes on the market in some parts of the country, but also elevated, 30-year, fixed-rate mortgages, which remain around 7%, a major factor influencing America’s continuing housing affordability challenges.

“Home price growth continues to slow, as a comparison with a strong 2023 spring is still impacting year-over-year differences,” said Dr. Selma Hepp, chief economist for CoreLogic. “Nevertheless, the April uptick in mortgage rates to this year’s high has cooled some of the typical spring homebuyer demand, which pulled monthly gains of 1.1% below the March-to-April average.”

“The home price slowing also highlights buyers’ increased sensitivity to rising interest rates, as well as the anticipation that presumed lower rates down the road will help ease the affordability crunch,” Hepp continued. “Also, the price cooling is more pronounced in markets where there has been an influx of inventory and/or new construction, as well as those where additional homeownership costs (such as insurance, taxes and HOA fees) have risen relatively faster.”
emphasis added

This was the same YoY increase as reported for March, and down from the 5.8% YoY increase reported at the beginning of 2024.

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