Home prices remain on the rise, but the latest home price data from CoreLogic confirmed that gains are decelerating.
Single-family home prices were up 3.9% annually in August, according to the analytics firm’s Home Price Index (HPI), marking the lowest pace of price growth recorded since July 2023. Furthermore, home price gains are still expected to wane on an ongoing basis, with CoreLogic projecting a year-over-year pickup of just 2.3% by the end of summer next year.
Month over month, home prices dropped by 1%.
“While mortgage rates have dropped in recent weeks, August home sales were [influenced] by still-high rates in July and August, which lowered affordability,” said Selma Hepp, chief economist for CoreLogic. “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.”
CoreLogic pointed to political uncertainty around November’s election and lagging confidence among consumers as ongoing factors bringing appreciation down. The company cited a recent report from The Conference Board, which saw its Consumer Confidence Index reading drop 6.9 points — the largest fall since August 2021 — in light of the weakening labor market situation and concerns about future income.
August’s price gains were fueled by growth in the Northeast, but weakness in many oversupplied Sun Belt markets, such as those in Texas and Florida, held the pickup back. One notable exception has been Miami, with the Sunshine State’s largest metro seeing a year-over-year price increase of 8.9%, strongest among the 10 metro areas highlighted within CoreLogic’s study. Houston saw the weakest price growth among tracked markets, with prices creeping upward just 1.1% yearly.
South Dakota led all states in year-over-year appreciation in August, seeing prices increase by 10% compared to last fall. New Jersey was next, with prices up by 9.5%. Just one state saw a year-over-year decline: Hawaii, which saw a loss of 0.1%.
