CoreLogic: Annual Home Price Growth Picks Up Pace

(Image courtesy of CoreLogic)

U.S. home prices (including distressed sales) increased by 3.7% year-over-year in August, according to CoreLogic, Irvine, Calif.

Home prices rose by 0.3% compared with July 2023, CoreLogic’s Home Price Index report said.

CoreLogic Chief Economist Selma Hepp noted continued mortgage rate increases challenge affordability across U.S. housing markets. She called home price growth in line with typical seasonal averages, “reflecting strong demand bolstered by a healthy labor market, strong wage growth and supporting demographic trends.”

But with a slower buying season ahead and the surging cost of homeownership, additional monthly price gains may taper off, Hepp noted.

“While some states in the West still posted annual home price losses in August, that number has been decreasing since the spring of this year,” CoreLogic said. “Meanwhile, housing markets in New England are starting to heat up, with New Hampshire, Maine, Vermont and Rhode Island seeing the largest year-over-year price gains in August.”

Top takeaways from the Home Price Index report:

• In August, the annual appreciation of detached properties (3.7%) was 0.2 percentage points higher than that of attached properties (3.5%).

• CoreLogic’s latest forecast shows annual U.S. home price gains at 3.4% by August 2024.

• Miami posted the highest year-over-year home price increase of the 20 metros CoreLogic examined in June, at 8.3%. St. Louis saw the next-highest gain (6.4%), followed by Charlotte, N.C. (5.4%).

• Among states, New Hampshire ranked first for annual appreciation in July (up by 9.4%), followed by Maine and Vermont (both up by 8.9%). Eight states recorded home price losses: Idaho (-4%), Montana (-2.7%), Nevada (-2.3%), Utah (-2%), Washington  (-1%), Arizona (-0.9%), Texas (-0.4%) and New York (-0.2%).