The latest report from CoreLogic found that in November 2023 annual single-family home price growth reached an impressive 5.2%. This figure marks the strongest annual growth rate since January 2023.
Northeastern states continue to demonstrate significant appreciation in home prices, with Rhode Island leading the pack at a remarkable 11.6% increase. Connecticut (10.6%) and New Jersey (10.5%) also experienced double-digit growth in this period. Moreover, 24 other states recorded higher year-over-year home price gains than the national rate.
Areas in the Northeast, South, and Midwest, characterized by relative affordability and strong demand, witnessed the most substantial increases in home prices. Many markets that initially lagged in price growth during the pandemic have seen a resurgence, driven by job gains and legislative acts such as the Inflation Reduction Act and the CHIPS Act, which have contributed to increased 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."
She added, “This continued strength remains remarkable amid the nation’s affordability crunch but speaks to the pent-up demand that is driving home prices higher. 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.”
Key Highlights:
In November 2023, U.S. single-family home prices, including distressed sales, surged by 5.2% year-over-year compared to November 2022. On a month-over-month basis, home prices increased by 0.2% compared to October 2023.
In November, detached properties saw an annual appreciation of 5.4%, surpassing attached properties at 4.4%.
CoreLogic's forecast indicates that annual U.S. home price gains will decelerate to 2.5% in November 2024.
Detroit topped the list with the highest year-over-year home price increase among the country's 20 tracked metro areas in November, boasting an impressive 8.7% gain. Miami followed closely with an 8.3% increase, with Charlotte, North Carolina, securing the third spot at 7.4%.
On a state level, Rhode Island led the way in November with an annual appreciation of 11.6%, followed by Connecticut at 10.6% and New Jersey at 10.5%. In contrast, Idaho (-1.3%), Utah (-0.4%), and Washington, D.C. (-0.2%) recorded year-over-year home price losses.
