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), has released its July 2024 Home Price Index (HPI) report. The report provides near-real-time tracking of home price changes at national, state, and metropolitan levels, including detailed price tier segmentation for metropolitan areas.
Chief Economist’s Insights:
“July marked the seventh consecutive month of slowing annual house price appreciation. High mortgage rates have severely impacted affordability, leaving many buyers on the sidelines and keeping sellers locked into their current rates,” said Mark Fleming, chief economist at First American. “These challenging market conditions have largely frozen home buying and selling activity, resulting in a cooling—but still positive—pace of appreciation. However, with the prospect of Federal Reserve interest rate cuts this fall, mortgage rates have already started to decline in August, which may encourage some buyers and sellers to re-enter the market, potentially increasing transaction volume.”
July 2024 Local Market Price Tier Highlights:
The First American Data & Analytics HPI breaks down home price changes at the metropolitan level into three price tiers based on local market sales data:
- Starter Tier: Homes in the bottom third of the market price distribution.
- Mid-Tier: Homes in the middle third.
- Luxury Tier: Homes in the top third.
“While the national house price trend is important, real estate is inherently local, and not all markets are experiencing price appreciation,” noted Fleming. “Annual price growth remains strong in top markets like Anaheim, Calif., and Pittsburgh, where demand continues to outstrip supply or where relative affordability attracts buyers. Conversely, in cities like Austin, Texas, and Tampa, Fla., prices are decelerating, with some markets even seeing declines.”
July 2024 HPI Highlights by Core-Based Statistical Areas (CBSAs):
CBSAs with the Greatest Year-Over-Year Increases in Starter Tier HPI:
- Pittsburgh: +13.5%
- St. Louis: +10.3%
- New York: +7.5%
- Anaheim, Calif.: +7.4%
- Nassau County, N.Y.: +7.4%
CBSAs with the Greatest Year-Over-Year Increases in Overall HPI:
- Anaheim, Calif.: +9.9%
- Pittsburgh: +6.9%
- Cambridge, Mass.: +6.8%
- Miami: +6.7%
- Seattle: +6.1%
CBSAs with Year-Over-Year Decreases in Overall HPI:
- Austin, Texas: -1.0%
- Oakland, Calif.: -0.9%
- Tampa, Fla.: -0.7%
Methodology:
The First American Data & Analytics HPI measures single-family home prices, including distressed sales, using a repeat-sales methodology that tracks the same properties over time. The index is based on over 46 million paired transactions, with data going back to 1980. For non-disclosure states, the HPI incorporates a combination of public sales records, MLS listings, and appraisal data to estimate house prices. The report is updated monthly, and preliminary index estimates for the most recent month are provided, with potential revisions as more data becomes available.
Next Release:
The next release of the First American Data & Analytics House Price Index is scheduled for the week of September 17, 2024.
Disclaimer: The views expressed in this report are those of First American’s Chief Economist and may not necessarily reflect the views of First American or its management. These opinions are subject to change and should not be taken as a guarantee of future market conditions. © 2024 by First American. Information may be used with proper attribution.
