Home prices increased 1.2% in March compared with February and were up 5.3% compared with March 2023, according to CoreLogic’s home price index report.
“Home prices increased again this March beyond the typical seasonal uptick, despite mortgage rates reaching this year’s high and the affordability crunch continuing to keep many prospective buyers on the sidelines,” says Selma Hepp, chief economist for CoreLogic, in a statement. “Even with the long-anticipated break in for-sale inventory, the surging cost of homeownership, further fueled by rising insurance and tax expenses, is holding potential home sales back, as is evident in the slow rise in sales compared with last year. These price pressures reflect the overall supply-and-demand mismatch, as well as continued interest from households with larger budgets.”
Regionally, the Northeast continued to lead in annual home price gains for the month. Four of the top five states for annual appreciation were in the Northeast: New Jersey (12.2%), New Hampshire (10.6%), Connecticut (9.5%) and Rhode Island (9.2%).
In addition, the inventory gains seen in states like Florida and Texas still lag in the Northeast, a trend that continues to exacerbate supply-and-demand fundamentals and further adds to home price pressure in that region, CoreLogic says.
Consequently, markets with larger additions of homes for sale are now experiencing slowing home price appreciation.
CoreLogic’s forecast shows annual U.S. home price gains relaxing to 3.7% in March 2025.
Photo: Kostiantyn Li