In November, home prices inched up by 4% on a year-over-year basis. Home prices have been steadily increasing over the past few months but remain far below the 19% year-over-year increase seen in 2021
Jan. 3, 2025
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Housing costs continued to rise at the end of 2024.
U.S. home prices continue to rise. According to the Calculated Risk blog, which analyzed recent data from Freddie Mac, there was a 0.56% month-over-month increase in home prices during November on a seasonally adjusted basis. Year-over-year, home prices were up 4%, slightly higher than the 3.9% increase in October. After peaking with a 19.1% year-over-year rise in July 2021, price growth has recently accelerated. Over the past three months, home prices have grown at an annualized rate of 6.9%.
The FMHPI and the NAR median prices appear to be leading indicators for Case-Shiller. The Case-Shiller index was up 3.6% YoY in October. The FMHPI is suggesting the Case-Shiller index will be up about the same or a little more year-over-year in the November report as in October.
As inventory builds, and if sales stay low, house price growth (year-over-year) will slow in 2025.Read more
