Home Price Growth Stagnant In August

Home prices softened in August – the result of continued high prices and mortgage rates.

The latest CoreLogic Home Price Index (HPI) rose to 3.9% year over year – the lowest rate of growth since July 2023. On a month-over-month basis, home prices decreased by 1% from July.  Hawaii was the only state to post an annual price drop in August, at -0.1%. Price gains are projected to slow to 2.3% by the end of summer 2025.

Mortgage rates dropped to the lowest level in nearly two years in the last week of September, according to Freddie Mac. However, weakening consumer confidence in the job market and uncertainty around the November election could be to blame for muted price gains.

“While mortgage rates have dropped in recent weeks, August home sales were by still-high rates in July and August, which lowered affordability,” said CoreLogic Chief Economist Dr. Selma Hepp. “The combined impact of high prices and high mortgage rates kept a lid on price growth, with annual gains falling to the lowest level in a year and the monthly gain falling well below what is typically observed in August. Price gains in August were driven by areas in the Northeast but brought down by softening markets in Texas and Florida.” 

Detached properties appreciated 4.2% this August on an annual basis, compared to the slight decrease of 0.2% for attached properties. 

Among the largest U.S. metros posting the highest YOY price increases in August were Miami (8.9%) and Chicago (6.8%).

South Dakota ranked first for annual appreciation in August (up by 10%), followed by New Jersey (up by 9.5%).

CoreLogic expects to release its September HPI on November 5.