In a recent release of housing data by CoreLogic, the nation saw a robust year-over-year increase of 5.8% in single-family home prices in January, marking the highest rate of appreciation expected for the year. However, despite this upward trend, projections indicate a gradual slowdown in home price growth to 2.6% by January 2025.
“U.S. annual home price growth strengthened to 5.8% in January 2024,” CoreLogic Chief Economist Selma Hepp said. “And while the acceleration continues to reflect the residual impact of strong appreciation in early 2023, the annual rate of growth is expected to taper off in coming months.”
Affordability challenges persist in many regions, exacerbated by higher mortgage rates and inventory shortages, particularly in areas with lower wages. Nevertheless, despite these hurdles, millennials are increasingly making their way into homeownership, accounting for over half of home purchase applications between 2020 and 2023.
Key takeaways:
- Nationwide, single-family home prices (including distressed sales) rose by 5.8% year-over-year in January 2024 compared to January 2023. Month-over-month, home prices increased by 0.1% compared to December 2023.
- Detached properties saw higher annual appreciation (6%) compared to attached properties (4.9%) in January.
- CoreLogic's forecast anticipates annual home price gains to ease to 2.6% by January 2025.
- Miami recorded the highest year-over-year home price increase among the 10 highlighted metro areas in January, at 10.2%, followed by San Diego at 8.5%.
- Rhode Island secured the top spot for annual appreciation in January (up by 13.2%), trailed by New Jersey (up by 11.6%) and Connecticut (up by 11%), with no states reporting year-over-year home price losses.
