Home Price Growth To Decelerate Through 2025
Northeast markets show strong annual gains in October, despite "slower job growth" and "affordability concerns."
Rising 3.4% on an annual basis, home price growth stalled in October, continuing months of deceleration projected to continue through 2025, according to the latest home-price data from CoreLogic.
New Jersey, Rhode Island, and New Hampshire claimed three of the top-five spots for year-over-year price gains, rising 8.1%, 7.5%, and 6.3%, respectively. Hawaii was the only state to post an annual home price decline.
Nationwide, prices rose an average of 3.4% in October, just 0.02% higher than September. The stagnation highlights the fact that home price growth has remained relatively flat since this summer, only eking out gains in certain pockets of the country.
“Similar to much of the housing market activity, home prices continued to mostly move sideways in October,” said CoreLogic Chief Economist Dr. Selma Hepp. “A slight home price bump after a late summer decline reflects the rebound in home buying demand resulting from a short but effective decline in mortgage rates in August.”
Still, CoreLogic forecasts that national single-family home prices will reach a new peak level in April 2025. Currently, the median sales price for all single-family homes in the U.S. is $385,000.
“As we continue to bump along during this slower time of the year for the housing market, home prices are not expected to reveal much about what’s ahead for the spring home buying market,” Hepp added. “In the last few years though, springtime has seen home prices jump higher than before the pandemic despite elevated mortgage rates.”
Of the metros CoreLogic flagged for being at risk for a market price decline, Provo-Orem, Utah, took the lead with a 70%-plus probability for decline in the next 12 months. Salt Lake City, Utah; Atlanta-Sandy Springs-Rowsell, Ga; Tucson, Ariz.; and Palm Bay-Titusville-Melbourne, Fla., also indicated a very high risk of declines in home prices over the course of 2025.