U.S. Home Prices Increased by 5.2% Year over Year in November

U.S. home prices increased by 5.2% year over year in November, the strongest annual growth rate recorded since January 2023.
Annual home price growth is projected to slow to 2.3% in the spring of 2024 before stabilizing for the rest of the year.
Detroit was the nation’s fastest-appreciating metro area in November at 8.7%, ending Miami’s 16-month run in the top spot.
Northeastern states again posted the nation’s largest price gains, with Rhode Island, Connecticut and New Jersey showing increases that were more than double the national rate.

Annual single-family home price growth moved up again in November, posting a 5.2% gain. Northeastern states continued to show significant appreciation, with Rhode Island (11.6%), Connecticut (10.6%), and New Jersey (10.5%) all seeing double-digit growth. In addition, 24 other states posted higher year-over-year home price gains than the national rate.

Areas in the Northeast, South and Midwest — where relative affordability continues to drive demand — posted the strongest home price increases. Many of the nation’s current fastest-appreciating real estate markets lagged in price growth during the pandemic but have recently benefited from job gains, with The Inflation Reduction Act and the CHIPs Act helping to spur housing demand.

“Home price appreciation continued to push forward in November, despite the new highs in mortgage rates seen over the year,” said Dr. Selma Hepp, chief economist for CoreLogic. “And while the annual growth reflects comparison with last year’s declines, seasonal gains remain in line with historical averages. However, in some metro areas, such as those in the Mountain West and the Northwest, higher interest rates are having a greater impact on homebuyers’ budgets, which is contributing to a larger seasonal slump.”

“This continued strength remains remarkable amid the nation’s affordability crunch but speaks to the pent-up demand that is driving home prices higher,” Hepp continued. “Markets where the prolonged inventory shortage has been exacerbated by the lack of new homes for sale recorded notable price gains over the course of 2023.”