- On an annual basis, home prices rose by 3.4% in September, the slowest growth rate in over a year, and are projected to slow to 2.3% by the same time next year.
- Miami continued to post the highest gain of tracked U.S. metro areas, at 6.8%, followed closely by Chicago at 6.7%.
- Rhode Island reported the highest annual growth rate of all states at 9%.
- Twenty-seven states reached new home price highs in September.
IRVINE, Calif. — (BUSINESS WIRE) — November 5, 2024 — CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released the CoreLogic Home Price Index (HPI™) and HPI Forecast™ for September 2024.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241105370690/en/
Figure 1: HPI & HPI Forecast % Change YoY (Graphic: Business Wire)
U.S. home price growth continued to cool, slowing to 3.4% year-over-year in September. Compared with the month prior, home prices rebounded to post a very slight uptick (0.02%) following months of modest monthly declines. Taken together, home price levels have been relatively flat since late summer.
Besides the uncertainty regarding the U.S. election and mortgage rate volatility, the mixed signals around the current state of the U.S. economy may be dampening demand and price appreciation. According to the latest numbers from the U.S. Bureau of Labor Statistics, the economy added just 12,000 jobs in October 2024, the fewest in almost four years. On the other hand, the most recent consumer spending data showed solid continued spending and an upbeat consumer outlook.
“Like much of the housing market at the moment, home prices remained relatively flat coming into the fall,” said CoreLogic Chief Economist Dr. Selma Hepp. “Despite some improved affordability from lower mortgage rates during August, homebuyers mostly kept on the sidelines and decided to wait out the mortgage rate drop for a potentially better opportunity next year, when the current volatility, uncertainty surrounding the election’s outcome, and the impact on longer-term rates may be slightly clearer. And while the mortgage rate and economic outlook is full of questions, home prices are likely to maintain their leveled path until early next year when buyers return to the housing market.”
Top Takeaways:
- U.S. single-family home prices (including distressed sales) increased by 3.4% year over year in September 2024 compared with September 2023. On a month-over-month basis, home prices increased by 0.02% compared with August 2024.
- In September, the annual appreciation of detached properties (3.6%) was 1.5 percentage points higher than that of attached properties (2.1%).
- CoreLogic’s forecast shows annual U.S. home price gains relaxing to 2.3% in September 2025.
- Miami posted the highest year-over-year home price increase of the country's 10 highlighted metro areas in September, at 6.8%. Chicago saw the next-highest gain at 6.7%.
- Among states, Rhode Island ranked first for annual appreciation in September (up by 9%), followed by New Jersey (up by 8.6%). Hawaii was the only state to record a year-over-year home price loss (-0.4%).
The next CoreLogic HPI press release, featuring October 2024 data, is scheduled to be issued on December 3, 2024, at 8 a.m. EST.
Methodology
The CoreLogic HPI™ is built on industry-leading public record, servicing and securities real-estate databases and incorporates more than 45 years of repeat-sales transactions for analyzing home price trends. Generally released on the first Tuesday of each month with an average five-week lag, the CoreLogic HPI is designed to provide an early indication of home price trends by market segment and for the Single-Family Combined tier, representing the most comprehensive set of properties, including all sales for single-family attached and single-family detached properties. The indices are fully revised with each release and employ techniques to signal turning points sooner. The CoreLogic HPI provides measures for multiple market segments, referred to as tiers, based on property type, price, time between sales, loan type (conforming vs. non-conforming) and distressed sales. Broad national coverage is available from the national level down to ZIP Code, including non-disclosure states.
CoreLogic HPI Forecasts™ are based on a two-stage, error-correction econometric model that combines the equilibrium home price—as a function of real disposable income per capita—with short-run fluctuations caused by market momentum, mean-reversion, and exogenous economic shocks like changes in the unemployment rate. With a 30-year forecast horizon, CoreLogic HPI Forecasts project CoreLogic HPI levels for two tiers — Single-Family Combined (both attached and detached) and Single-Family Combined Excluding Distressed Sales. As a companion to the CoreLogic HPI Forecasts, Stress-Testing Scenarios align with Comprehensive Capital Analysis and Review (CCAR) national scenarios to project five years of home prices under baseline, adverse and severely adverse scenarios at state, metropolitan areas and ZIP Code levels. The forecast accuracy represents a 95% statistical confidence interval with a +/- 2% margin of error for the index.
About Market Risk Indicators
Market Risk Indicators are a subscription-based analytics solution that provide monthly updates on the overall health of housing markets across the country. CoreLogic data scientists combine world-class analytics with detailed economic and housing data to help determine the likelihood of a housing bubble burst in 392 major metros and all 50 states. Market Risk Indicators is a multi-phase regression model that provides a probability score (from 1 to 100) on the likelihood of two scenarios per metro: a >10% price reduction and a ≤ 10% price reduction. The higher the score, the higher the risk of a price reduction.
About the Market Condition Indicators
As part of the CoreLogic HPI and HPI Forecasts offerings, Market Condition Indicators are available for all metropolitan areas and identify individual markets as overvalued, at value or undervalued. These indicators are derived from the long-term fundamental values, which are a function of real disposable income per capita. Markets are labeled as overvalued if the current home price indexes exceed their long-term values by greater than 10% and undervalued where the long-term values exceed the index levels by greater than 10%.
Source: CoreLogic
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About CoreLogic
CoreLogic is a leading provider of property insights and innovative solutions, working to transform the property industry by putting people first. Using its network, scale, connectivity and technology, CoreLogic delivers faster, smarter, more human-centered experiences that build better relationships, strengthen businesses and ultimately create a more resilient society. For more information, please visit www.corelogic.com.
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