August sees lowest year-over-year increase in over a year
Single-family home prices in the US grew at their slowest pace in more than a year, according to a new report from CoreLogic.
In August, single-family home prices rose 3.9% compared to the same month in 2023 – the lowest annual growth rate since last July.
Although home prices continued to rise, the pace of growth has clearly slowed, with a monthly decline of 1% compared to July 2024. CoreLogic chief economist Selma Hepp attributed this to a combination of still-high mortgage rates and economic uncertainty that’s weighing on potential buyers.
“While mortgage rates have dropped in recent weeks, August home sales were by still-high rates in July and August, which lowered affordability,” Hepp said in the report. “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.”
According to CoreLogic, detached properties saw higher appreciation rates in August, with prices rising by 4.2% year over year. Meanwhile, attached properties, like condos and townhouses, saw a slight decline in value, falling by 0.2%.
CoreLogic’s forecast suggested that home price gains will continue to ease, with the annual growth rate expected to drop to 2.3% by August 2025.
Regional differences in price trends were stark, with some areas seeing more significant price hikes. Miami led the way among metro areas, with an 8.9% year-over-year increase in August. Chicago followed with a 6.8% rise.
Among states, South Dakota posted the highest annual appreciation at 10%, with New Jersey close behind at 9.5%. On the flip side, Hawaii was the only state to report a year-over-year home price decline, with a modest drop of 0.1%.
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“Price gains in August were driven by areas in the Northeast but brought down by softening markets in Texas and Florida,” Hepp said.
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