Northeastern states spearhead home price growth
CoreLogic’s latest Home Price Index (HPI) has revealed a consistent upward trend in single-family home prices across the US fueled by pent-up homebuyer demand.
US home price appreciation rose 5.2% in November. This growth was notably led by several Northeastern states, with Rhode Island (11.6%), Connecticut (10.6%), and New Jersey (10.5%) all experiencing double-digit increases.
“Home price appreciation continued to push forward in November, despite the new highs in mortgage rates seen over the year,” CoreLogic chief economist Selma Hepp said in the report. “And while the annual growth reflects comparisons with last year’s declines, seasonal gains remain in line with historical averages.
“This continued strength remains remarkable amid the nation’s affordability crunch but speaks to the pent-up demand that is driving home prices higher. Markets where the prolonged inventory shortage has been exacerbated by the lack of new homes for sale recorded notable price gains over the course of 2023.”
The HPI report showed that areas in the Northeast, South, and Midwest were experiencing the strongest price increases, attributed mainly to their relative affordability, which continues to drive demand. These markets, which lagged in price growth during the pandemic, benefited from recent job gains bolstered by legislative measures like The Inflation Reduction Act and the CHIPs Act.
However, areas in the Mountain West and Northwest saw a larger seasonal slump due to the impact of higher interest rates on homebuyer budgets.
Key findings from the report include:
- Annual home prices inched up 0.2% from October.
- Detached properties appreciated by 5.4% annually, outpacing attached properties, which saw a 4.4% increase.
- CoreLogic’s forecast anticipates a slowdown in home price gains to 2.5% by November 2024.
- Among the 20 tracked metro areas, Detroit (8.7%) and Miami (8.3%) witnessed the highest annual price increases in November, with Charlotte and North Carolina (both 7.4%) also showing significant growth.
- Rhode Island led state-level appreciation, followed by Connecticut (+10.6%) and New Jersey (+10.5%), while Idaho (-1.3%), Utah (-0.4%), and Washington, DC (-0.2%) experienced year-over-year price declines.
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