Single-family homes shine, condos lag
Annual home price growth ticked higher for the second consecutive month in November, increasing to +3.33% from +3.13% the month prior, with the Northeast and Midwest continuing to lead all regions, according to an Intercontinental Exchange (ICE) Home Price Index report.
The data indicates these price increases were a result of weak sales from late 2023 trailing into the backward looking 12-month window, rather than a lead indicator of increasing prices in the month.
Single-month price gains even backed off somewhat last month, reaching just +0.22% amid modestly softer purchase demand under rising interest rates.
In the residential sector, single-family growth significantly outpaced condominium appreciation, with single-family homes showing +3.55% growth, compared to condos at +1.32%. The data reveals varying performance across major metropolitan areas, with six of the 50 largest markets experiencing price declines from the previous year.
Hartford, Connecticut, leads all major markets with an 8.8% annual price increase, followed by Buffalo, New York at 8.3%, and Providence, Rhode Island at 8.0%.
Meanwhile, Cleveland, Ohio rose 7.4%, Philadelphia, Pennsylvania by 6.9%, and Chicago, Illinois by 6.6%.
On the other hand, several markets, especially in the South, posted price erosion. Austin, Texas led at -3.1%, while Tampa, Florida came in second at -2.2% and then San Antonio, Texas with -1.3%.
Market outlook
Based on the given data, this market is projected for accelerating annual gains in December before pulling back marginally into early 2025.
The ICE Home Price Index is acknowledged as the first true repeat sales index published every month, offering insights into home price trends across the major US metropolitan areas, offering data to understand regional and national patterns of the housing market.
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