In the third quarter of 2024, U.S. home prices rose by 4.3% compared to the same period the previous year, as detailed by the Federal Housing Finance Agency (FHFA) House Price Index (HPI).
According to the FHFA, U.S. housing prices saw a modest growth of 0.7% from the second quarter to the third quarter of 2024. This increasing trend, although slower than in past years, reflects the ongoing demand for housing which continues to exceed the available supply. Dr. Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics, commented that the deceleration in price growth aligns with elevated housing prices and rising mortgage rates. These factors have contributed to the slowing pace of price increases, a trend noticed since late 2023.
A comprehensive assessment of national housing prices indicates consistent annual appreciation since 2012. Within this period, 49 states experienced a rise in house prices from the third quarter of 2023 to the same quarter in 2024. Hawaii led with a 10.4% increase, followed by Delaware at 8.5%, and Rhode Island at 8.4%. Conversely, a decline was observed in the District of Columbia and Louisiana with decreases of 3.1% and 0.4% respectively. In the 100 largest metropolitan areas, house prices rose in 91 locations over the past year, with Miami-Miami Beach-Kendall, FL, experiencing the highest increase at 10.8%.
Interestingly, the North Port-Sarasota-Bradenton area in Florida witnessed the most considerable decline, with prices dropping by 6.4%. Examining the broader U.S. regional dynamics, all nine census divisions reported positive price changes year-over-year. The East North Central division showed the most substantial growth at 6.8%, while the West South Central division had the least, with a 1.6% increase.
The FHFA HPI remains a critical resource for understanding shifts in the housing market. It consolidates vast amounts of data from home sales across the nation, offering granular insights into price changes at various geographical levels. This transparency and detail in data analysis are crucial for market participants looking to grasp current market conditions.
The data underscores a continuing robust demand for housing, though tempered by challenges such as high prices and mortgage rates. As potential buyers navigate this landscape, understanding regional variations in price trends becomes increasingly important.
Source: FloridaRealtors
