Key information
- Home prices in the United States saw an increase of 4.3 percent between the third quarter of 2023 and the third quarter of 2024.
- 49 states experienced positive annual appreciation, with Hawaii leading the way at 10.4 percent.
- An increase in the seasonally adjusted monthly index of 0.7 percent was observed in September compared to August.
Key results
U.S. housing prices saw an increase of 4.3 percent between the third quarter of 2023 and the same period in 2024, according to the Federal Housing Finance Agency’s (FHFA) Housing Price Index. . A more modest growth of 0.7 percent was observed when comparing prices between the second quarter and third quarter of 2024. This upward trend continued in September, with a monthly increase in the index adjusted for variations seasonal growth by 0.7 percent compared to August.
Anju Vajja, deputy director of FHFA’s Division of Research and Statistics, noted that this growth represents a slowdown in home price appreciation, a trend that began in the fourth quarter of 2023. As housing demand continues to exceed available supply, it suggests that high prices and mortgage rates likely contributed to this deceleration.
Regional distribution
Nationally, every quarter since the start of 2012 has seen positive annual appreciation in the U.S. housing market. Between the third quarters of 2023 and 2024, housing prices increased in 49 states. Hawaii led the way with an increase of 10.4 percent, followed by Delaware (8.5 percent), Rhode Island (8.4 percent), Connecticut (8.2 percent) and New Jersey ( 8.1 percent). Conversely, housing prices fell in the District of Columbia (3.1 percent) and Louisiana (0.4 percent).
When it comes to metro areas, 91 of the 100 largest have seen price increases over the past four quarters. Miami-Miami Beach-Kendall (FL) saw the largest annual increase (10.8 percent), while North Port-Sarasota-Bradenton (FL) saw the largest decline (6.4 percent). ).
Methodology and data
All nine census divisions recorded annual increases in home prices. The East North Central division topped the list with an increase of 6.8% between the third quarter of 2023 and the same period in 2024, while the West South Central division recorded the lowest four-quarter increase, with just 1.6%. percent.
The FHFA HPI is a comprehensive set of publicly available home price indexes that tracks changes in the value of single-family homes. It is based on data dating back to the mid-1970s, covering all 50 states as well as more than 400 U.S. cities, and includes tens of millions of home sales. This extensive database provides a better understanding of housing price variations at different geographic levels: national, by census division, state, metro area, county, zip code and census tract. The FHFA applies a transparent methodology, based on a weighted statistical technique of repeated sales, to analyze housing transactions and prices.
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