WASHINGTON, April 23, 2024 (GLOBE NEWSWIRE) — National constant-quality home prices in March 2024 were up 1.5% from a month ago and 5.7% from a year ago (not seasonally adjusted), according to data from the American Enterprise Institute’s (AEI) Housing Center. Despite subdued purchase activity and relatively high rates, YoY HPA remains strong, largely due to buyers being well-qualified and continued competition due to a strong sellers’ market. HPA is projected to remain around 6% in April and May 2024.
The AEI Housing Center provides the most advanced and timely information on home prices available. For example, the Case Shiller home price index, which will come out later this month, will be an average of December 2023, January 2024, and February 2024, thus effectively reflecting January’s HPA. The AEI Housing Center’s April release is for March, two full months later. Additionally, we use Optimal Blue rate lock data to project April and May 2024’s home price appreciation as well.
March YoY HPA varied significantly among the 60 largest metros (see #1 in graphic). It ranged from -1.8% in Austin (-5.3% inflation-adjusted) to 14.6% in Indianapolis (+11.1% inflation-adjusted).
In March 2024, YoY HPA ranged from 8.3% in the Northeast to 4.6% in the South (see #2 in graphic). The decline in YoY HPA in the South was largely driven by the Florida metros. While the West was hit the hardest by the rising rates at the beginning of 2023 (-3.7% YoY HPA in April), its HPA has now recovered to 5.3% on a year-over-year basis.
Historically, the low price tier HPA has outpaced those in the upper price tiers. This trend continued in March, with the YoY HPA up 7.3% and 4.4% for the low price tier and high price tier, respectively.
Months’ supply stood at 3.6 months in March 2024, down from 4.6 months in February 2024 and up from 3.5 months in March 2020 (pre-pandemic) (See #3 in graphic). Low levels of supply continue to signal a strong seller’s market. The months’ supply for the low price tier came in at 2.2 months in March 2024, helping to explain the 7.3% YoY price growth for this tier.
National Home Price Appreciation (HPA) Index – March 2024
Media Contact Details:
Sissi Li
American Enterprise Institute Housing Center
Washington, DC
https://www.aei.org/centers/housing-center/
Sissi[email protected]
203-419-5240
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/63c8833f-efcb-4c04-b0b2-e1391e585492