U.S. home prices increased 1.0% in August compared with July and were up 3.9% compared with August 2023, according to CoreLogic’s home price index report.
The year-over-year gain of 3.9% was the lowest rate of home price appreciation recorded since last July.
“While mortgage rates have dropped in recent weeks, August home sales were slowed by still-high rates, which lowered affordability,” explains Selma Hepp, chief economist for CoreLogic, in a statement. “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. Price gains in August were driven by areas in the Northeast but brought down by softening markets in Texas and Florida.“
Also keeping price growth expectations muted is the uncertainty around the November election.
Currently, CoreLogic is forecasting that home price gains will slow to 2.3% by the end of summer 2025.
In August, the annual appreciation of detached properties (4.2%) was 4 percentage points higher than that of attached properties (-0.2%).
Miami posted the highest year-over-year home price increase of the country’s 10 highlighted metro areas in August, at 8.9%. Chicago saw the next-highest gain at 6.8%.
Among states, South Dakota ranked first for annual appreciation in August (up by 10%), followed by New Jersey (up by 9.5%).
Hawaii was the only state to record a year-over-year home price loss (-0.1).
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