Cooling home prices signal a shift in the housing market landscape.

  • U.S. home price growth fell to 4.7% year-over-year in June 2024.
  • Monthly home prices increased by only 0.3% from May to June 2024.
  • CoreLogic forecasts a further decline in annual home price growth to 2.3% by June 2025.
  • Miami saw the highest year-over-year price increase at 10% among major metros.
  • High mortgage rates continue to impact affordability and homebuyer sentiment.

According to CoreLogic’s latest report, U.S. home prices experienced a year-over-year growth of 4.7% in June 2024, a slight decrease from 4.9% in May. This marks the second consecutive month of declining growth rates, with expectations that the trend will continue into the next year, potentially dropping to just 2.3% by June 2025. Month-over-month, home prices saw a modest increase of 0.3% from May to June. nnThe report highlights that while no states reported annual home price declines, South Dakota led the way with a remarkable 10% increase. Other states with significant growth included New Jersey (9.3%), Rhode Island (9.2%), Connecticut (8.5%), and New Hampshire (8.2%). In major metropolitan areas, Miami topped the list with a 10% year-over-year increase, followed by San Diego and Las Vegas at 7.5%. nnThe slowdown in home price appreciation is largely attributed to elevated mortgage rates, which have constrained affordability for many potential buyers. Although the Federal Reserve is expected to cut rates in September, the current high rates continue to weigh heavily on the housing market. Dr. Selma Hepp, CoreLogic’s chief economist, noted that the 0.3% monthly gain is significantly lower than the pre-pandemic average of 0.8%. nnAs the spring home-buying season comes to a close, housing market activity has slowed, with nine states reporting monthly price declines, up from three the previous month. The anticipation of lower mortgage rates later this year has led consumers to adopt a wait-and-see approach. The next CoreLogic HPI report, featuring July 2024 data, is set to be released on September 3, 2024.·

Factuality Level: 8
Factuality Justification: The article provides a detailed analysis of the CoreLogic Home Price Index and its forecast, presenting factual data and statistics about home price trends. However, it includes some tangential information about the methodology and services offered by CoreLogic, which could be seen as unnecessary for the main topic. Overall, the article is well-researched and presents accurate information, but the additional details slightly detract from its focus.·
Noise Level: 8
Noise Justification: The article provides a detailed analysis of home price trends, supported by data and forecasts from CoreLogic. It discusses the impact of mortgage rates on affordability and includes specific statistics on home price changes across various states and metropolitan areas. The methodology section adds scientific rigor, and the article stays focused on the housing market topic without irrelevant information. However, it could improve by offering more actionable insights or solutions for readers.·
Public Companies: CoreLogic (N/A)
Key People: Dr. Selma Hepp (Chief Economist for CoreLogic)

Financial Relevance: Yes
Financial Markets Impacted: The housing market and mortgage industry are impacted due to changes in home prices and mortgage rates.
Financial Rating Justification: The article discusses home price trends, forecasts, and the effects of mortgage rates on affordability, which are critical financial topics affecting the housing market and related financial sectors.·
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: The article discusses trends in home prices and does not mention any extreme events.·

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