First American Data & Analytics today released its June 2024 Home Price Index (HPI) report. The report tracks home price changes less than four weeks behind real-time at the national, state, and metropolitan levels and includes metropolitan price tiers that segment sale transactions into starter, mid, and luxury tiers.
The report noted that house prices nationally are now 54.7% higher compared to pre-pandemic levels (February 2020). House price growth reported in last month’s HPI for April 2024 to May 2024 was revised down 0.1 percentage points, from 0.5% to 0.4%.
“In June, home prices continued their upward trend and hit another record high, but annualized house price appreciation slowed for the sixth consecutive month. Elevated mortgage rates continue to keep homeowners' rates locked in while reducing affordability for potential first-time home buyers,” said Mark Fleming, chief economist at First American. “The resulting pullback in demand coincided with an uptick in supply, which is cooling price growth. However, housing remains fundamentally undersupplied nationally, which will keep a floor on how low house price appreciation can fall.”
The First American Data & Analytics HPI segments home price changes at the metropolitan level into three price tiers based on local market sales data: starter tier, which represents home sales prices at the bottom third of the market price distribution; mid-tier, which represents home sales prices in the middle third of the market price distribution; and the luxury tier, which represents home sales prices in the top third of the market price distribution.
“High-end home buyers are more immune to mortgage rate fluctuations, and many existing homeowners are sitting on substantial equity that can be used to finance a bigger and better property. As a result, house prices in the luxury price tier increased on an annual basis in all 30 markets tracked," said Fleming.
Core-Based Statistical Areas (CBSAs) with the greatest year-over-year increases in HPI were Anaheim, Calif. (+10.2%), Miami, Fla. (+8.9%), Pittsburgh, Pa. (+6.5%), Las Vegas (+6.4%), and San Diego (+6.2%).
