Single-family home prices rose 5.2% annually in November, according to the CoreLogic Home Price Index (HPI), continuing a run of rising gains despite interest rates remaining high.
It’s the fifth month of year-over-year increases in the HPI — a streak of gains that’s impacted somewhat by price weakness at the tail end of last year, though Selma Hepp, chief economist at CoreLogic, noted that seasonal gains are still in line with historical averages.
“This continued strength remains remarkable amid the nation’s affordability crunch but speaks to the pent-up demand that is driving home prices higher,” Hepp said. “Markets where the prolonged inventory shortage has been exacerbated by the lack of new homes for sale recorded notable price gains over the course of 2023.”
Yearly appreciation was once again boosted by significant price appreciation in the Northeast. Rhode Island (11.6% annual price growth), Connecticut (10.6%) and New Jersey (10.5%) all saw outsized price expansion year over year; six states in the Northeast Census region posted yearly growth of at least 7%.
Overall, 27 states logged larger annual gains than the national average. Areas in the aforementioned Northeast along with the Midwest and South, where relative affordability has heightened demand, saw the largest increases. On the other hand, price growth in the costly West, where the high interest rate environment can have a disproportionate effect on already expensive property values, remains behind.
Eleven continental states west of the Mississippi had year-over-year home price growth at 3% or less. Two states (Idaho and Utah), along with the District of Columbia, saw home price declines; notably, Idaho and Utah were among the states that saw large price increases during the pandemic as destinations for house hunters leaving expensive markets.
Among metro areas, Miami continues to see the highest yearly increase at 8.3%. Annual gains in Florida’s largest city are moderating after an early fall bump (annual increases the past two months were at 8.8% and 8.5%), but Miami remains the clear-cut leader in year-over-year price growth among the large metros CoreLogic tracks. San Diego was second at 7.7%, followed by Boston at 6.0%.
Many of the fastest-appreciating real estate markets nationwide lagged in price growth during the pandemic, per CoreLogic, but legislative actions like the Inflation Reduction Act and the CHIPs (Creating Helpful Incentives to Produce Semiconductors) Act have helped housing demand by bolstering employment.
