U.S. home prices increased 0.6% in November compared with October and were up 3.4% compared with November 2023, according to CoreLogic’s home price index.
The index shows that home price growth has slowed dramatically during the past year: In November 2023, home prices were up 5.2% compared with November 2022, whereas a year later, they had only increased 3.4%.
Currently, CoreLogic is forecasting that home prices will rise by 3.8% annually by November 2025, after hitting a new high this spring.
Although home price growth was basically flat in November, 17 states hit new highs: New Jersey ranked first for annual appreciation in November, up by 7.8%; followed by Rhode Island, up by 7.3%; and New Hampshire up by 6.9%. No state recorded a year-over-year home price loss.
The increase in November came despite the fact that mortgage rates were back on the rise.
Although mortgage rates are expected to to remain elevated for the rest of the year, buyer demand in more budget-friendly markets is healthy.
“Heading into the end of the year, home prices remained relatively flat though showing some marginal improvement from the weakness seen heading into the fall and following reduced homebuyer demand amid the summer mortgage rate surge,” says Selma Hepp, chief economist for CoreLogic. “Nevertheless, the cooling home price growth trend is expected to continue well into 2025 partly due to the base effect and comparison with strong early 2023 appreciation and partly because of the expectations of higher mortgage rates over the course of 2025.”
“Regionally, variations persist, as some more affordable areas – including smaller metros in the Midwest – remain in high demand and continue to see upward home price pressures,” Hepp adds.
In November, the annual appreciation of detached properties (3.7%) was 2 percentage points higher than that of attached properties (1.7%).
Chicago posted the highest year-over-year home price increase of the country’s 10 tracked metro areas in November, at 5.8%. Miami saw the next-highest gain at 5.6%.
Photo: Ronnie George
