First American Data & Analytics has released its October 2024 Home Price Index (HPI) report, noting that price appreciation leveled off on a national level in October to halt nine months of year-over-year slowing.

The HPI was down 0.1% month over month but up 3.8% year over year during the month, with the ebb of mortgage rates throughout September helping simmer demand and give prices a push. But as Mark Fleming, chief economist at First American noted, interest rate relief was transitory, likely holding back deal movement until 2025.

“While mortgage rates slid downward through September, they unexpectedly rebounded in October, wiping out the short-lived affordability boost from lower mortgage rates,” said 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.”

Home prices are now up 54.2% from pre-pandemic levels. With the fortunes of markets across the country continuing to diverge, geography continues to play a big part, Fleming said.

“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.”