House Price Appreciation by State and Metro Area: The First Quarter of 2024

2024-06-06T10:23:51-05:00

Despite higher mortgage rates, limited resale inventory and strong growth in demand continued to put upward pressure on house price appreciation. House price appreciation was recorded in all 50 states and the District of Columbia. According to the quarterly all-transactions House Price Index (HPI) released by the Federal Housing Finance Agency (FHFA), U.S. house prices rose 6.3% between the first quarter of 2023 and the first quarter of 2024. Nationally, house prices have experienced positive annual appreciation for each quarter since the third quarter of 2012. The quarterly FHFA HPI not only reports house prices at the national level, but it also provides insights about house price fluctuations at the state and metro area levels. The FHFA HPI used in this article is the all-transactions index, measuring average price changes in repeat sales or refinancings on the same single-family properties. Over the past four years, house prices have increased dramatically, and are much higher than they were before the pandemic. Nationally, house prices rose 47.7% between the first quarter of 2020 and the first quarter of 2024. At the state level, Florida led the way with the highest price appreciation (+67.0%) due to strong population growth and limited housing supply. It was followed by Maine with a 63.6% gain, and Tennessee with a 61.7% gain. Meanwhile, the District of Columbia had the lowest price growth (+14.6%) as people moved away from the high-density areas and toward more affordable suburbs. House prices have changed unevenly across U.S. metro areas, from the first quarter of 2020 to the first quarter of 2024. House price appreciation ranged from 12.2% to 81.1%. More than half of the metro areas saw house prices rise by more than the national price growth rate of 47.7%. House prices in the South and the West have grown faster than the prices in the Midwest and Northeast. Within the top 20 metro areas that had the highest house price appreciation, 13 metro areas are located in the South Atlantic Division and four in the East South Central Division, while none of them were in the Midwest. Discover more from Eye On Housing Subscribe to get the latest posts to your email.

House Price Appreciation by State and Metro Area: The First Quarter of 20242024-06-06T10:23:51-05:00

Existing Home Sales Recede in April

2024-05-22T11:15:35-05:00

Existing home sales fell for the second straight month in April, after a big monthly drop in March, according to the National Association of Realtors (NAR). Meanwhile, low resale inventory and strong demand continued to drive up existing home prices, marking the tenth consecutive month of year-over-year median sales price gains. Due to elevated interest rates, homeowners with lower mortgage rates stayed put and have not wanted to trade in for higher rates. This is driving home prices higher and resale inventory lower. Eventually, mortgage rates are expected to decrease gradually, leading to increased demand (and unlocking lock-in inventory) in the coming quarters. However, that decline is dependent on future inflation reports. Total existing home sales—including single-family homes, townhomes, condominiums, and co-ops— declined 1.9% to a seasonally adjusted annual rate of 4.14 million in April. On a year-over-year basis, sales were 1.9% lower than a year ago. The first-time buyer share rose to 33% in April, up from 32% in March and 29% a year ago. Total housing inventory registered at the end of April was 1.21 million units, up 9% from last month and up 16.3% from a year ago. At the current sales rate, April’s unsold inventory sits at a 3.5-month supply, up from 3.2 months last month and 3.0 months a year ago. This inventory level remains very low compared to balanced market conditions (4.5 to 6 months’ supply) and illustrates the long-run need for more home construction. Homes stayed on the market for an average of 26 days in April, down from 33 days in March, but up from 22 days in April 2023. The April all-cash sales share was 28% of transactions, the same share as last month and a year ago. All-cash buyers are less affected by changes in interest rates. The April median sales price of all existing homes was $407,600, up 5.7% from last year. This marked the highest recorded prices for the month of April. Compared to a year ago, the median single-family prices rose 5.6% to $412,100, and the median condominium/co-op prices increased 5.4% to $365,300. Compared to last month, all four regions saw a decline in existing home sales in April. Sales in the Northeast, Midwest, South, and West decreased 4.0%, 1.0%, 1.6% and 2.6%, respectively. On a year-over-year basis, sales in the Northeast, Midwest, and South decreased 4.0%, 1.0%, and 3.1% in April, while sales in the West rose 1.3%. Discover more from Eye On Housing Subscribe to get the latest posts to your email.

Existing Home Sales Recede in April2024-05-22T11:15:35-05:00

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