House prices will rise by 4.3% in the third quarter of 2024
US home prices rose 4.3% year-on-year in the third quarter of 2024, according to the latest House Price Index (HPI) published on Tuesday by the US Federal Agency for Housing Financing (FHFA).
Compared to the second quarter figure, house prices rose by 0.7%. And the FHFA’s seasonally adjusted monthly index for September also rose 0.7% from August.
“U.S. home price growth slowed in the third quarter, continuing a trend that began in the fourth quarter of the previous year,” Anju Vajja, deputy director of FHFA’s research and statistics department, said in a written statement . “While house prices continued to rise as housing demand outpaced steady housing supply, higher house prices and mortgage rates likely contributed to the slowdown in price growth.”
FHFA’s readings were expected given that the U.S. housing market has experienced positive annual appreciation every quarter since early 2012.
On an annual basis, home prices rose in 49 of the 50 states in the third quarter of 2024. Hawaii (+10.4%) led with the highest appreciation rate, followed by Delaware (+8.5%) and Rhode Island (+8 .4%). The only locations where price declines occurred were the District of Columbia (-3.1%) and Louisiana (-0.4%).
Looking at the metropolitan area level, prices have increased over the past year in 91 of the 100 largest areas evaluated by the FHFA. Miami saw the largest year-over-year increase at 10.8%. On the other hand, the North Port-Sarasota-Bradenton area, about 200 miles away, saw the largest decline at 6.4%.
All nine census divisions experienced positive year-over-year home price growth, FHFA reported. The East North Central division (Wisconsin, Michigan, Illinois, Indiana and Ohio) led the way with a 6.8% increase between the third quarter of 2023 and the third quarter of 2024.
In a similar report released on Tuesday, the S&P CoreLogic Case-Shiller The index recorded 3.9% growth in house prices during the year ended September. That was down from a 4.3% annualized gain in August and represented the slowest annualized growth since August 2023.
