Home prices across the country were up 5.3% year over year and 1.1% month over month in April, according to CoreLogic’s Home Price Index (HPI).
That marks six straight months of annual gains above 5%, along with 147 consecutive months of year-over-year growth. CoreLogic noted last month that the pace of price growth looks set to remain above 5% for most of 2024, slowly decelerating as the year goes on; thus far, conditions appear to be following on trend, with April’s year-to-year price growth flat from March and month-to-month price growth down 10 basis points.
“Home price growth continues to slow, as a comparison with a strong 2023 spring is still impacting year-over-year differences,” said Selma Hepp, CoreLogic’s chief economist. “Nevertheless, the April uptick in mortgage rates to this year’s high has cooled some of the typical spring homebuyer demand, which pulled monthly gains of 1.1% below the March-to-April average.”
Hepp also noted that home price slowing reflects potential buyers’ sensitivity to fluctuating rates, as well as the hope that waiting until the presumed lowering cycle starts will yield more affordability. Hepp also echoed recent commentary about the cooling effects of growing homeownership costs like insurance and homeowner association fees and of added inventory in some metros.
As in March, no state recorded year-over-year price declines in April. The Northeast continues to show price strength, with New Hampshire (12% year-over-year price growth) and New Jersey (11%) leading the country in gains. Among the top 10 metros tracked by CoreLogic, San Diego saw the highest year-over-year rise at 9.9%.
CoreLogic still expects price growth to cool by the end of the year and beyond, projecting annual acceleration of 3.4% by April 2025. By then, the double-digit yearly gains in some parts of the country may be a thing of the past, with CoreLogic anticipating only a few states logging price increases of higher than 6%.
