Home Price Growth Slowing
Recent data from the S&P CoreLogic Case-Shiller Home Price Index (HPI) indicates a noticeable deceleration in home price growth, despite prices remaining elevated. As of July 2024, the HPI reached a record high for the 14th consecutive month, reflecting a seasonally adjusted annual growth rate of 2.15%. This marks a significant drop from earlier in the year, when growth peaked at 6.53% in February. Similarly, the Federal Housing Finance Agency (FHFA) reported its own record high for the sixth month in a row, with a July increase of 1.57%. Overall, both indices show a year-over-year growth rate decline, underscoring a shift in the housing market’s momentum.
From a regional perspective, the S&P CoreLogic Index highlights disparities among metro areas, with only two out of twenty—San Francisco and Tampa—showing price declines. Notably, Seattle led the way with a robust annual growth rate of 13.78%, while New York and Las Vegas also demonstrated strong appreciation. The FHFA data revealed mixed results across its nine census divisions, with some experiencing negative monthly depreciation. These trends suggest a cooling market that may present both challenges and opportunities, necessitating strategic adjustments to pricing and inventory management to adapt to evolving market conditions.
