Home Prices Continue to Grow but at a Much Slower Pace
Looking ahead, prices are only expected to grow by 2.3% in the next year
Oct. 1, 2024
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Home price growth is slowing down.
Home prices are rising but at a much slower rate than in previous years, according to recent data from CoreLogic, a provider of property information. In August 2024, U.S. home prices rose by 3.9% year-over-year, although month-over-month prices fell by 1% by next spring and 2.3% by August 2025. This low rate of growth could be caused by a variety of factors, including concerns over the job market and the upcoming election.
“While mortgage rates have dropped in recent weeks, August home sales were by still-high rates in July and August, which lowered affordability,” said Dr. Selma Hepp, Chief Economist for CoreLogic. “The combined impact of high prices and high mortgage rates kept a lid on price growth, with annual gains falling to the lowest level in a year and the monthly gain falling well below what is typically observed in August. Price gains in August were driven by areas in the Northeast but brought down by softening markets in Texas and Florida.“
