Home Appreciation Remains Strong

*Source: CoreLogic

Home appreciation has remained strong based on the most recent data from Core Logic and Black Knight. But will it cool?

Home prices nationwide, including distressed sales, increased year over year by 5.3% in April 2024 compared with April 2023. On a month-over-month basis, home prices grew by 1.1% in April 2024 compared with March 2024 (revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results).

Forecast Prices Nationally

The CoreLogic HPI Forecast indicates that home prices will rise by 0.8% from April 2024 to May 2024 and increase by 3.4% on a year-over-year basis from April 2024 to April 2025.

Home Price Growth Set to Cool by Spring 2025

Annual U.S. home price appreciation remained above 5% in April, with three states posting double-digit gains. By next spring, national price gains are projected to slow to 3.4%, with only a few states putting up increases of higher than 6%. This slow cooling reflects not only the increasing number of homes on the market in some parts of the country, but also elevated, 30-year, fixed-rate mortgages, which remain around 7%, a major factor influencing America’s continuing housing affordability challenges.

* Source: CoreLogic - June 2024

Another Data Point

Black Knight reported that home prices rose 0.3% on a seasonally adjusted basis and 0.9% non-adjusted in March. Home prices are now up 5.1% year over year, down from 5.7%. The year-over-year number declined because of a very high comp from last year.

Remember , markets are local. The Raleigh-Durham area continues to be solid partly based on having a diverse employer base. Charlotte and other surrounding cities mirror this trend. The coastal and mountain areas continue to grow with both retirees and second homes.