Home prices decreased 0.5% in October compared with September but were up 3.8% compared with October 2023, according to First American’s home price index.
Home prices as of October were 54.2% higher compared to pre-pandemic levels in February 2020.
“National annual house price appreciation stabilized in October, ending a nine-month streak of annual deceleration,” says Mark Fleming, chief economist at First American, in a statement. “While mortgage rates slid downward through September, they unexpectedly rebounded in October, wiping out the short-lived affordability boost from lower mortgage rates. As a result, potential home buyers may hit pause, dampening home buying activity through the rest of 2024. Heading toward the new year, house price growth seems poised to maintain a steady, balanced pace—neither too hot, nor too cold.”
Home price growth reported in last month’s HPI for August 2024 to September 2024 was revised down 0.08 percentage points, from an increase of 0.1% to an increase of 0.02%.
Markets in the South and West had weakest price growth in October.
“House price trends vary significantly by market, and annual price growth in October was slowest in markets in the South and West,” Fleming says. “Affordability challenges, and in some markets a bump in inventory relative to demand, are keeping a lid on price appreciation.”
Photo: David Nieto