The national housing market is experiencing a shift as home price growth continues to moderate. According to CoreLogic, home prices increased by 5.3% year-over-year in April 2024, a significant slowdown from the double-digit growth seen last year. This trend is largely due to higher mortgage rates, currently averaging around 7%, and an increase in housing inventory. Key Highlights:
  • National Trends: Home prices rose by 5.3% year-over-year in April 2024, and month-over-month prices increased by 1.1% from March 2024. Despite the slowing growth, prices are still expected to rise by 0.8% from April to May 2024 and by 3.4% year-over-year by April 2025.
  • Regional Variances: States like New Hampshire, New Jersey, and South Dakota saw the highest annual increases, ranging from 10.8% to 12%. Metropolitan areas like San Diego also showed strong performance, with a 9.9% year-over-year increase.
  • Market Dynamics: The increased availability of homes is giving buyers more options, while high mortgage rates are impacting affordability. This has resulted in a cooling of the market compared to the previous spring buying frenzy.
  • Future Outlook: The market is expected to continue experiencing moderate growth. The CoreLogic HPI Forecast suggests a steady but slower rise in home prices, with annual appreciation projected to slow down to 3.4% by spring 2025.
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