Home Prices Hit Sixth All-Time High

Home prices hit yet another all-time high as tight inventory keeps competition elevated.

Prices were up 6.5% YOY in March, on par with the month prior and the sixth record high reached in the last year, according to the S&P CoreLogic Case-Shiller National Home Price NSA Index

Month-over-month, national prices rose 0.3% after seasonal adjustment, while the 20-City Composite and the 10-City Composite registered gains of 0.3% and 0.5%, respectively.

Monthly prices were cooling at the end of 2023 into 2024, but increased demand and still-tight inventory have turned that trend around. Despite high interest rates, the lack of homes on the market has kept competition booming for well-priced listings.

“Regionally, the Northeast remains the top performer with an 8.3% annual gain, showcasing robust growth compared to other metro markets,” said Brian D. Luke, Head of Commodities, Real & Digital Assets at S&P Dow Jones Indices.

“Conversely, cities like Tampa, Phoenix, and Dallas, which saw top-tier performance in 2020 and 2021, are now growing at a slower pace. COVID was a boom for Sunbelt markets, but the bigger gains the last couple of years have been the northern metro cities.”

For cities, San Diego once again reported the highest annual gains at 11.1%, followed by New York (9.2%) and Cleveland (8.8%).

Denver, reporting the smallest YOY growth for three consecutive months, holds the lowest ranking but still saw a 2.1% annual gain.

The Federal Housing Finance Agency’s House Price Index has similar results, showing prices up 6.6% YOY and 1.1% from Q4 2023.

“U.S. house prices continued to grow at a steady pace in the first quarter,” said Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics. “Over the last six consecutive quarters, the low inventory of homes for sale continued to contribute to house price appreciation despite mortgage rates that hovered around 7%.”

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