Single-family home prices were up in February by 5.5% year-over-year, according to new data from CoreLogic. On a month-over-over measurement, prices were up by 0.7%.
Among states, South Dakota ranked first for annual appreciation in January (up by 13.8%), followed by New Jersey (up by 12.5%) and Rhode Island (up by 11.6%). Only Idaho recorded a year-over-year home price loss of -0.1%.
CoreLogic projected that year-over-year home price gains will continue through 2024, albeit at a slower pace, and the company’s forecast points to annual home price gains relaxing to 3.1% in February 2025.
“Home price growth pivoted in February, as the impact of the January 2023 Home Price Index bottom finally faded,” said Dr. Selma Hepp, chief economist for CoreLogic. “As a result, the U.S. should begin to see slowing annual home price gains moving forward. Nevertheless, with a 0.7% increase from January to February 2024, which is almost double the monthly increase recorded before the pandemic, spring home price gains are already off to a strong start despite continued mortgage rate volatility. That said, more inventory finally coming to market will likely translate to more options for buyers and fewer bidding wars, which typically keeps outsized price growth in check. Still, despite affordability challenges, homebuyer demand appears to favor already expensive, coastal markets with a limited availability of properties for sale.”
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