Home prices across the country rose 1.1% month-over-month in November and 17.5% year-over-year, according to the latest Federal Housing Finance Agency House Price Index (FHFA HPI®).
For the nine census divisions, seasonally adjusted monthly house price changes ranged from +0.5 percent in the West North Central division to +1.9 percent in the South Atlantic division. The 12-month changes ranged from +13.3 percent in the West North Central division to +22.8 percent in the Mountain division.
“House price levels remained elevated in November, but the data indicate a pivot,” said Will Doerner, Ph.D., Supervisory Economist in FHFA’s Division of Research and Statistics.
“The last four months reflect average gains of 1.0 percentage point, down from the larger prior changes during the spring and summer months. This new trend is a welcome shift but still twice the monthly average we have seen in the last 20 years, which echoes concerns about access and affordability in housing markets.”
Zillow recently reported that the typical home value is now $320,662, 19.6% above that of December 2020 and a record high for Zillow’s data, which dates back more than 20 years.
Month-over-month appreciation rose from 1.2% to 1.4% in December, while inventory fell 11.1% month-over-month. Newly listed inventory fell 18.9% month-over-month, the largest drop in the last three years.
“Home sales are slumping, but not for lack of demand,” Redfin Chief Economist Daryl Fairweather said.
“There are plenty of homebuyers on the hunt, but there is just nothing for sale. In many markets, shopping for a home feels like going to the grocery store only to find the shelves bare. In January, I expect to see more buyers and sellers in the market, but demand will increase more than supply– pushing prices higher at the start of this year.”
The HPI is a collection of house price indexes that measure changes in single-family home values based on data from all 50 states and over 400 American cities, extending back to the mid-1970s.