U.S. home prices increased 1.5% in the fourth quarter compared with the third quarter and were up 6.5% compared with the fourth quarter of 2022, according to Federal Housing Finance Agency’s (FHFA) home price index.
Mont-over-month, home prices increased 0.1% in December compared with November.
“U.S. house prices increased modestly over the course of 2023,” says Anju Vajja, acting deputy director for FHFA’s Division of Research and Statistics, in a statement. “However, the market showed signs of softening as house price appreciation was lower in the fourth quarter of the year than in the previous quarter.”
Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012, according to the FHFA.
As of the end of the fourth quarter, states with the highest annual home price appreciation included Rhode Island (15.1%), Vermont (13.3%), West Virginia (12.4%), Connecticut (12.2%), New Jersey (11.4%).
States/districts with the lowest home price appreciation on an annual basis included Hawaii (-3.4%), and District of Columbia (-1.2%).
The top metro that saw the highest home price appreciation was Miami-Miami Beach-Kendall, Fla. (13.8%)
The metropolitan area that experienced the most significant price decline was Urban Honolulu, Hawaii, (-12.9%).
All nine census divisions had positive house price changes year-over-year. The New England division recorded the strongest appreciation, posting a 10.3% increase. The West South Central division recorded the smallest four-quarter appreciation, at 3.2%.
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