CoreLogic: US Annual Home Price Growth Rate Increased in August

U.S. home prices increased year over year for the 139th consecutive month in August.

Home prices are 42% higher compared with March 2020, when the pandemic began.

August’s annual 3.7% home price gain was the highest since February 2023.

CoreLogic projects that year-over-year home price appreciation will relax slightly by August 2024 to 3.4%.

Eight states, mostly in the West, saw year-over-year home price declines, the fewest since February 2023.

Of large metro areas, Miami continued to lead the country for annual home price growth, with an 8.3% gain.

The median sales price for a U.S. single-family home remained at $375,000 in August, with California ($705,000), the District of Columbia ($630,000) and Massachusetts ($585,000) again leading the nation.

CoreLogic’s Home Price Index dropped to an 11-year low in the spring of 2023 but is starting to regain momentum. While some states in the West still posted annual home price losses in August, that number has been decreasing since the spring of this year. Meanwhile, housing markets in New England are starting to heat up, with New Hampshire, Maine, Vermont and Rhode Island seeing the largest year-over-year price gains in August.

“While continued mortgage rate increases challenge affordability across U.S. housing markets, home price growth is in line with typical seasonal averages, reflecting strong demand bolstered by a healthy labor market, strong wage growth and supporting demographic trends,“ said Selma Hepp, chief economist for CoreLogic. “Still, with a slower buying season ahead and the surging cost of homeownership, additional monthly price gains may taper off.”