Home Prices Continue to Grow, But Some Markets Could See a Slowdown Soon
By next summer, the US housing market could see home price increases cool to 2.3% year-over-year, compared with the 4.7% increase observed this year
Aug. 7, 2024
Image: Jason / stock.adobe.com
Home prices are still growing, but in the next year they're projected to increase at a slower rate.
In June 2024, home prices across the U.S. rose by 4.7% compared with June 2023, but this growth is slowing down. A recent report from real estate data tracker CoreLogic shows there were increases across the board, with no states experiencing a decrease in prices. South Dakota saw the largest increase in home prices at 10% year-over-year, followed by Rhode Island and Connecticut at 9.2% and 8.5%, respectively. However, the nationwide housing market is expected to see these increases cool to 2.3% year-over-year by next summer, and some metros may even see prices drop.
The CoreLogic Market Risk Indicator (MRI), a monthly update of the overall health of housing markets across the country, predicts that Palm Bay-Titusville-Melbourne, FL (70%-plus probability) is at a very high risk of a decline in home prices over the next 12 months. Atlanta-Sandy Springs-Roswell, GA; Gainesville, FL; North Port-Sarasota-Bradenton, FL; and Spokane-Spokane Valley, WA are also at very high risk for price declines.
