The journey to stabilize the U.S. housing market faces hurdles, with a modest recovery in home sales and inventories countered by high mortgage rates impacting affordability. Despite increased listings, pending home sales only rose slightly, around 5% to 7% higher than last year through March 2024.
Examining broader housing indicators reveals consistent trends, indicating the need for lower mortgage rates and slowed home price growth to spur market activity. However, a persistent supply-demand mismatch keeps home price growth robust, with monthly increases on the rise. CoreLogic’s Home Price Index projects continued growth, with over 4% average increase expected for the year.
In February 2024, the CoreLogic S&P Case-Shiller Index reported a 6.4% year-over-year increase, marking eight months of annual growth. Despite high mortgage rates, the month-over-month index for February rose substantially by 0.6%, surpassing previous years’ averages.
CoreLogic’s Chief Economist, Dr. Selma Hepp, emphasized the challenges in normalizing housing markets, citing affordability issues due to high mortgage rates. Nonetheless, solid home price growth persists, with metros like New York and Chicago experiencing strong performance.
Adjusted for inflation, home prices are marginally above 2006 levels. The 10-city and 20-city composite indexes show continued gains, with metros in the Northeast leading in appreciation.
In February, most metros experienced quicker price growth year over year, with notable gains in San Diego, Chicago, and Detroit. However, Portland remains the slowest appreciating market.
Nationally, home prices rose by 0.6% from January to February, with varying monthly gains across metros. Seattle, San Diego, and San Francisco recorded the largest increases, while Tampa saw a decline.
Overall, February’s appreciation varied by price tier and location, with low-tier homes appreciating the fastest. Despite challenges, the housing market continues to show resilience and adaptability
I’m Tanner Murphy, a retired real estate agent from California, now writing for propertyescape.net. I simplify California’s complex real estate laws for readers, making it easier to understand and navigate the market.
