WASHINGTON, June 21, 2024 (GLOBE NEWSWIRE) — National constant-quality home prices in May 2024 were up 0.6% from a month ago and 5.4% 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, y-o-y 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 5% in June and July 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 February, March, and April 2024, thus effectively reflecting March’s HPA. The AEI Housing Center’s June release is for May, two full months later. Additionally, we use Optimal Blue rate lock data to project June and July 2024’s home price appreciation.
May YoY HPA varied significantly among the 60 largest metros (see #1 in graphic). It ranged from -2.5% in Austin (-5.8% inflation-adjusted) to 11.2% in Providence (+7.9% inflation-adjusted). Austin is down 10.1% from its peak in April 2022.
As of May 2024, metros with historically moderate HPA growth are now appreciating the fastest, while the former high-performers are experiencing the opposite (see #2 in graphic).
Historically, the low price tier HPA has outpaced those in the upper price tiers. This trend continued in May, with the YoY HPA up 7.9% and 4.2% for the low price tier and high price tier, respectively.
Months’ supply stood at 3.1 months in May 2024, up from 3.0 months in April 2024 and down from 3.2 months in May 2019 (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 2.0 months in May 2024, helping to explain the 7.9% YoY price growth for this tier.
National Home Price Appreciation (HPA) Index – May 2024
Media Contact Details:
Sissi Li
American Enterprise Institute Housing Center
Washington, DC
https://www.aei.org/centers/housing-center/
[email protected]
203-419-5240
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/18d364f4-0842-4f74-a09d-76b169fcdbf3