First American Data & Analytics, division of First American Financial Corporation, releases its October home price index (HPI) report that shows home prices are stabilizing nationwide after nine consecutive months of home prices decelerating. Moving forward, First American Chief Economist Mark Fleming believes the data indicates that home price growth is on a steadier path.
Home prices nationally were up 3.8% in Oct. 2024 compared to last year, and 54.2% higher than pre-pandemic levels (Feb. 2020). Home price growth reported in last month’s HPI, from Aug. 2024 to Sept. 2024, was revised down 0.08 percentage points, from 0.1% to 0.02%.
“While mortgage rates slid downward through September, they unexpectedly rebounded in October, wiping out the short-lived affordability boost from lower mortgage rates,” said First American Chief Economist Mark Fleming. “As a result, potential home buyers may hit pause, dampening home buying activity through the rest of 2024. Heading toward the new year, house price growth seems poised to maintain a steady, balanced pace — neither too hot, nor too cold.”
First American Data & Analytics, based in Santa Ana, Calif., segments price changes at the metropolitan level into three price tiers: the starter tier represents home sale prices at the bottom third of the market price distribution; the mid-tier represents home sale prices in the middle third of the market price distribution, and the luxury tier represents home sale prices in the top third of the market price distribution.
“House price trends vary significantly by market, and annual price growth in October was slowest in markets in the South and West,” said Fleming. “Affordability challenges, and in some markets a bump in inventory relative to demand, are keeping a lid on price appreciation.”
