Although May 2024 was the 148th consecutive month of home price growth across the country, year-over-year appreciation of 4.9% represented the lowest annual price gain since October 2023.
That’s according to CoreLogic, which released its Home Price Index (HPI) for May Tuesday, indicating slowing price growth despite appreciation in all 50 states on an annual basis.
On a month-over-month basis, home prices increased by 0.6% compared with April 2024.
The annual appreciation of detached properties (5.4%) was 2.6 percentage points higher than that of attached properties (2.8%), the report indicated.
“While national annual home price growth continues to slow as anticipated, cooling appreciation over the past months is now observed in more markets, as the surge in mortgage rates this spring caused both slowing homebuyer demand and prices,” said Dr. Selma Hepp, chief economist for CoreLogic. “However, persistently stronger home price gains this spring continue in markets where inventory is well below pre-pandemic levels, such as those in the Northeast.”
“Markets that are relatively more affordable, Hepp added, “such as those in the Midwest, have seen healthy price growth this spring. On the other hand, markets with notable inventory increases, including those in Florida and Texas, continue to see annual deceleration that is pulling prices below numbers recorded last year.”
San Diego posted the highest year-over-year home price increase of the country’s 10 highlighted metro areas in May, at 9.2%. Miami saw the next-highest gain at 8.5%.
Among states, New Hampshire ranked first for annual appreciation in May (up by 12%), followed by New Jersey and Rhode Island (both up by 9.8%).
CoreLogic is forecasting annual U.S. home price gains relaxing to 3% in May 2025. Its June data and forecast is expected to be issued on August 6.
