U.S. Home Prices Rise 4.3% YoY in Q3 2024

WASHINGTON  – U.S. home prices rose 4.3% between the third quarter of 2023 and the third quarter of 2024, according to the Federal Housing Finance Agency (FHFA) House Price Index (FHFA HPI). House prices were up 0.7% compared to the second quarter of 2024. FHFA’s seasonally adjusted monthly index for September was up 0.7 percent from August.

“U.S. house price growth slowed in the third quarter, continuing a trend that started in the fourth quarter of the previous year,” said Dr. Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics. “While house prices continued to increase because housing demand outpaced the locked-in housing supply, elevated house prices and mortgage rates likely contributed to the slowdown in price growth.”

Significant findings

• Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.
• House prices rose in 49 states between the third quarter of 2023 and the third quarter of 2024. The five states with the highest annual appreciation were 1) Hawaii, 10.4%; 2) Delaware, 8.5%; 3) Rhode Island, 8.4%; 4) Connecticut, 8.2%; and 5) New Jersey, 8.1%. House prices declined in the District of Columbia and Louisiana by 3.1% and 0.4%, respectively.
• House prices rose in 91 of the 100 largest metropolitan areas over the previous four quarters. The annual price increase was the greatest in Miami-Miami Beach-Kendall, FL at 10.8%. The metropolitan area that experienced the most significant price decline was North Port-Sarasota-Bradenton, FL at 6.4%.
• All nine census divisions had positive house price changes year-over-year. The East North Central division recorded the strongest appreciation, posting a 6.8 percent increase from the third quarter of 2023 to the third quarter of 2024. The West South Central division recorded the smallest four-quarter appreciation, at 1.6 percent.

The FHFA HPI is a comprehensive collection of publicly available house price indexes that measure changes in single-family home values based on data that extend back to the mid-1970s from all 50 states and over 400 American cities. It incorporates tens of millions of home sales and offers insights about house price changes at the national, census division, state, metro area, county, ZIP code, and census tract levels. FHFA uses a fully transparent methodology based upon a weighted, repeat-sales statistical technique to analyze house price transaction data.

Source: Federal Housing Finance Agency

© 2024 Florida Realtors®