Prices on single-family homes posted a 4.7% year-over-year increase during October, according to new data from CoreLogic. On a month-over-month basis, home prices inched up by 0.2% from September.
Regionally, the highest annual appreciation during October was in the Northeast, led by Connecticut with a 10.3% gain, New Jersey with a 9.9% spike and Rhode Island up by 9.7%. Four states recorded year-over-year home price losses: Utah (-1.6%), Idaho (-1.4%), Montana (-0.5%) and Texas (-0.2%).
CoreLogic projects that annual home price growth will relax to 2.9% by October 2024.
“Home price growth maintained its upward momentum in October, which continues to reflect gains from the strong spring season and contrasts with last year’s home price declines,” said Dr. Selma Hepp, chief economist for CoreLogic. “But even with high mortgage rates, October’s price gains line up with historical trends and speak to the strength of some potential buyers’ purchasing power, as they continue to outnumber available homes for sale. Metros that are seeing relatively stronger price gains are those with higher job growth, as well as those with an influx of higher-income, in-migrating households.”
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Simple math. Fed paused rate hikes and applications go up 45 days later. Out of those applications more people grabbed up the recovering inventory. Keep the rates up until these builders stop dragging out build times and the price gouging.