USA

US Housing Market 2024: Prices EXPLODE 6.3% in One Year, FHFA – Norada Real Estate Investments

2 minutes, 59 seconds Read
image

U.S. house prices have shown a steady increase over the past year, with a significant rise of 6.3 percent from April 2023 to April 2024. According to the Federal Housing Finance Agency (FHFA), the month-to-month increase from March to April 2024 was 0.2 percent. However, this growth reflects a slight slowdown compared to previous months, influenced by rising mortgage rates and an increase in housing inventory.

US Home Prices: A Comprehensive Analysis

Regional Price Changes

When we break down the data by region, we see variations in the rate of house price increases. The East South Central division saw the highest monthly increase of 1.4 percent from March to April 2024. On the other hand, both the West South Central and Middle Atlantic divisions experienced a slight decrease of -0.2 percent during the same period.


Buy/sell, rent/lease residential &
commercials real estate properties.

Over the past year, all nine census divisions recorded positive growth in house prices. The New England and Middle Atlantic divisions led with the highest annual increases of 8.5 percent, while the West South Central division had the smallest annual increase at 3.0 percent.

Monthly Price Change Estimates

Let’s dive deeper into the monthly price changes across different regions from March 2024 to April 2024:

  • Pacific: 0.4%
  • Mountain: 0.0%
  • West North Central: 0.6%
  • West South Central: -0.2%
  • East North Central: 0.2%
  • East South Central: 1.4%
  • New England: 0.7%
  • Middle Atlantic: -0.2%
  • South Atlantic: 0.1%

Annual Price Change Estimates

The annual price changes from April 2023 to April 2024 further illustrate the regional disparities:

  • U.S. Average: 6.3%
  • Pacific: 5.7%
  • Mountain: 5.2%
  • West North Central: 6.7%
  • West South Central: 3.0%
  • East North Central: 7.9%
  • East South Central: 6.1%
  • New England: 8.5%
  • Middle Atlantic: 8.5%
  • South Atlantic: 6.4%

Factors Influencing the Housing Market

Several factors have contributed to the current trends in U.S. home prices. The slight rise in mortgage rates has played a role in slowing down the rapid price appreciation seen in previous months. Additionally, an increase in housing inventory has provided more options for buyers, helping to moderate price growth.

According to Dr. Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics, the market is beginning to show signs of normalization. This indicates that while prices are still rising, the rate of increase is becoming more sustainable compared to the frenetic pace observed in earlier periods.

Historical Monthly Changes

Examining historical data reveals fluctuations in monthly price changes across various regions:

  • February 2024 to March 2024: The U.S. average remained unchanged at 0.0 percent, with notable decreases in the Pacific (-1.1 percent) and Middle Atlantic (-0.6 percent) regions, while the New England division saw a substantial increase of 1.0 percent.
  • January 2024 to February 2024: The U.S. experienced a 1.3 percent increase, led by the Pacific (1.9 percent) and New England (3.0 percent) regions.
  • December 2023 to January 2024: While the overall U.S. market saw a minor decrease of -0.1 percent, the West North Central region experienced a 1.5 percent increase.
  • November 2023 to December 2023: House prices rose by 0.2 percent on average, with a slight decrease in the West North Central region (-0.8 percent).
  • October 2023 to November 2023: The U.S. market saw a 0.4 percent increase, with consistent growth across most regions.

Conclusion

The U.S. housing market remains robust with continued price appreciation, although at a slower pace than in previous months. Regional variations highlight the diverse nature of the market, influenced by local economic conditions, housing supply, and buyer demand. Understanding these trends can help potential buyers and sellers make informed decisions in this dynamic market environment.

As the market shows signs of normalization, it is crucial to stay informed about the latest developments and consider regional differences when making real estate decisions. Whether you are buying or selling, being aware of these trends can help you navigate the complexities of the housing market effectively.


ALSO READ:

This post was originally published on 3rd party site mentioned on the title of this site

Similar Posts

X
0
    0
    Your Interest
    Your Interest List is emptyReturn to Buying
    ×