National House Prices Hover Near Historical Norms, According to First American Data & Analytics Monthly Home Price Index Report
Steady, single-digit house price growth signals a return to normal following the pandemic-to-post-pandemic roller-coaster ride, says Chief Economist Mark Fleming
First American Data & Analytics, a leading national provider of property-centric information, risk management and valuation solutions and a division of First American Financial Corporation (NYSE: FAF), released its November 2024 Home Price Index (HPI) report. The report tracks home price changes less than four weeks behind real time at the national, state and metropolitan (Core-Based Statistical Area) levels and includes metropolitan price tiers that segment sale transactions into starter, mid and luxury tiers. The full report can be found here.
Chief Economist Analysis:
“After a nearly year-long slow down, national house prices re-accelerated modestly for the first time since December 2023 on an annualized basis, but remain in line with historical norms,” said Mark Fleming, chief economist at First American. “As the housing market adjusts to the new normal of higher mortgage rates, buyers and sellers are gradually returning, supported by a healthy labor market and more homes for sale compared to last year. The result is steady, single-digit house price growth, reflecting a market returning to normal following the pandemic-to-post-pandemic roller-coaster ride.”
November 2024 Local Market Price Tier Highlights
The First American Data & Analytics HPI segments home price changes at the metropolitan level into three price tiers based on local market sales data: starter tier, which represents home sales prices at the bottom third of the market price distribution; mid-tier, which represents home sales prices in the middle third of the market price distribution; and the luxury tier, which represents home sales prices in the top third of the market price distribution.
“While some may have expected sustained higher mortgage rates to drive widespread house price declines, prices have proven resilient, falling in only two markets year over year last month,” said Fleming. “House prices tend to be ‘downside sticky’ because home sellers would rather withdraw from the market than sell at a discount.”
November 2024 First American Data & Analytics Price Tier HPI Highlights
| Core-Based Statistical Areas (CBSAs) Ranked by Greatest Year-Over-Year Increases in Starter Tier HPI | |||
| CBSA | Change in Starter Tier HPI | Change in Mid-Tier HPI | Change in Luxury Tier HPI |
| New York | +7.9 percent | +8.2 percent | +2.3 percent |
| Pittsburgh | +6.2 percent | +3.0 percent | +1.8 percent |
| Warren, Mich. | +6.1 percent | +5.8 percent | +6.2 percent |
| Washington | +5.7 percent | +5.8 percent | +5.6 percent |
| Cambridge, Mass. | +5.5 percent | +6.3 percent | +6.0 percent |
Additional November 2024 First American Data & Analytics HPI Highlights
| Core-Based Statistical Areas (CBSAs) with Greatest Year-Over-Year Increases in HPI | |
| CBSA | Change in HPI |
| Anaheim, Calif. | +7.7 percent |
| Cambridge, Mass. | +5.4 percent |
| New York | +5.3 percent |
| Warren, Mich. | +5.1 percent |
| Washington | +5.0 percent |
| Core-Based Statistical Areas (CBSAs) with a Year-Over-Year Decease in HPI | |
| Tampa, Fla. | -3.3 percent |
| Oakland, Calif. | -0.3 percent |
HPI data for all 50 states and the largest 30 CBSAs by population is available here.
Visit the First American Economic Center for more research on housing market dynamics.
