US Home Prices Hit Another Record High in March

S&P CoreLogic Case-Shiller Index Hits New All-Time High

The S&P CoreLogic Case-Shiller Indices for March 2024 show that U.S. home prices have reached a new all-time high. According to S&P Dow Jones Indices (S&P DJI), all major metro markets experienced month-over-month price increases.

Year-Over-Year Growth

The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index recorded a 6.5% annual gain in March, consistent with the previous month. The 10-City Composite index increased by 8.2%, slightly up from 8.1%, while the 20-City Composite index rose by 7.4%, up from 7.3%. San Diego led the gains among the 20 cities with an 11.1% year-over-year increase, followed by New York at 9.2% and Cleveland at 8.8%. Denver had the smallest annual growth at 2.1%.

HPI Quarterly and Annual Data

The Federal Housing Finance Agency (FHFA) reported that U.S. house prices rose 6.6% between Q1 2023 and Q1 2024. Compared to Q4 2023, house prices were up 1.1%. The seasonally adjusted monthly index for March showed a 0.1% increase from February. According to Dr. Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics, low inventory has supported house price appreciation despite mortgage rates hovering around 7%.

State and Metropolitan Trends

Nationally, house prices have appreciated annually each quarter since 2012. Over the past year, house prices rose in all 50 states. Vermont saw the highest appreciation at 12.8%, followed by New Jersey at 11.6%, New York at 10.9%, Delaware at 10.7%, and Wisconsin at 9.9%. The District of Columbia was the only area with a decline, falling by 1.5%.

In the top 100 metropolitan areas, 97 experienced price increases. The Allentown-Bethlehem-Easton area had the highest annual increase at 16.0%, while Urban Honolulu saw the largest decline at -3.2%.

Regional Performance

All nine U.S. census divisions reported year-over-year price increases. The Middle Atlantic division led with a 9.9% increase, while the West South Central division had the smallest gain at 3.7%.

Reports Summary

Given the persistent low inventory and steady demand, the U.S. housing market is expected to remain bullish. Despite high mortgage rates, price appreciation is likely to continue in the short term, driven by robust buyer interest and limited supply.