—House Prices in Several Top Markets are Now
Falling, says Chief Economist Mark Fleming—
First American Data & Analytics, a leading national
provider of property-centric information, risk management and
valuation solutions and a division of First American Financial
Corporation (NYSE: FAF), today released its July 2024 Home Price
Index (HPI) report. The report tracks home price changes less
than four weeks behind real time at the national, state and
metropolitan (Core-Based Statistical Area) levels and includes
metropolitan price tiers that segment sale transactions into
starter, mid and luxury tiers. The full report can be found
here.
July1 National House Price Index
First American Data & Analytics’
National Non-Seasonally Adjusted (NSA) HPI
Metric
Change in HPI
June-July 2024 (month over month)
+0.3 percent
July 2023-July 2024 (year over year)
+5.3 percent
Highlights
- House prices nationally are now 55.0 percent higher compared to
pre-pandemic levels (February 2020).
- House price growth reported in last month’s HPI for May 2024 to
June 2024 was revised down 0.1 percentage points, from 0.2 percent
to 0.1 percent.
Chief Economist Analysis:
“July marked the seventh consecutive month of slowing annualized
house price appreciation. Elevated mortgage rates have driven
affordability to near-record lows, leaving many buyers on the
sidelines and keeping sellers rate locked-in,” said Mark Fleming,
chief economist at First American. “The combination of the severely
unaffordable market conditions and the rate lock-in effect has
largely frozen home buying and selling, contributing to the cooling
but still positive pace of appreciation. However, the prospect of
Federal Reserve interest rate cuts this fall has already sent
mortgage rates lower in August, which may spur some buyers and
sellers to act and begin to defrost market transaction volume.”
July 2024 Local Market Price Tier Highlights
The First American Data & Analytics HPI segments home price
changes at the metropolitan level into three price tiers based on
local market sales data: starter tier, which represents home sales
prices at the bottom third of the market price distribution;
mid-tier, which represents home sales prices in the middle third of
the market price distribution; and the luxury tier, which
represents home sales prices in the top third of the market price
distribution.
“While the national house price trend is interesting, real
estate is inherently local and prices are not appreciating in all
markets,” said Fleming. “Annual price growth remains strong in top
markets where demand continues to outpace supply or where relative
affordability is a draw, such as Anaheim, Calif., and Pittsburgh.
In markets that offer relative affordability, homes remain more
accessible compared to other major markets, making them attractive
to buyers who are priced out of higher-cost regions, despite rising
prices. In contrast, house prices in other markets are decelerating
notably, with prices declining in cities like Austin, Texas, and
Tampa, Fla.”
July 2024 First American Data & Analytics Price Tier HPI
Highlights
Core-Based Statistical Areas (CBSAs)
Ranked by Greatest Year-Over-Year Increases in Starter Tier
HPI
CBSA
Change in Starter Tier
HPI
Change in Mid-Tier HPI
Change in Luxury Tier
HPI
Pittsburgh
+13.5 percent
+5.4 percent
+2.9 percent
St. Louis
+10.3 percent
+3.9 percent
+4.1 percent
New York
+7.5 percent
+3.7 percent
-1.7 percent
Anaheim, Calif.
+7.4 percent
+9.4 percent
+12.6 percent
Nassau County, N.Y.
+7.4 percent
+4.5 percent
+0.7 percent
Additional July 2024 First American Data & Analytics HPI
Highlights
Core-Based Statistical Areas (CBSAs)
with Greatest Year-Over-Year Increases in HPI
CBSA
Change in HPI
Anaheim, Calif.
+9.9 percent
Pittsburgh
+6.9 percent
Cambridge, Mass.
+6.8 percent
Miami
+6.7 percent
Seattle
+6.1 percent
Core-Based Statistical Areas (CBSAs)
with a Year-Over-Year Decrease in HPI
Austin, Texas
-1.0 percent
Oakland, Calif.
-0.9 percent
Tampa, Fla.
-0.7 percent
HPI data for all 50 states and the largest 30 CBSAs by
population is available here.
Next Release
The next release of the First American Data & Analytics
House Price Index will take place the week of September 17,
2024.
First American Data & Analytics HPI Methodology
The First American Data & Analytics HPI report measures
single-family home prices, including distressed sales, with indices
updated monthly beginning in 1980 through the month of the current
report. HPI data is provided at the national, state and CBSA levels
and includes preliminary index estimates for the month prior to the
report (i.e. the preliminary result of July transactions is
reported in August). The most recent index results are subject to
revision as data from more transactions become available.
The HPI uses a repeat-sales methodology, which measures prices
changes for the same property over time using more than 46 million
paired transactions to generate the indices. In non-disclosure
states, the HPI utilizes a combination of public sales records, MLS
sold and active listings, and appraisal data to estimate house
prices. This comprehensive approach is particularly effective in
areas where there is limited availability of accurate sale prices,
such as non-disclosure states. Property type, price and location
data are used to create more refined market segment indices. Real
Estate-Owned transactions are not included.
Disclaimer
Opinions, estimates, forecasts and other views contained in this
page are those of First American’s Chief Economist, do not
necessarily represent the views of First American or its
management, should not be construed as indicating First American’s
business prospects or expected results, and are subject to change
without notice. Although the First American Economics team attempts
to provide reliable, useful information, it does not guarantee that
the information is accurate, current or suitable for any particular
purpose. © 2024 by First American. Information from this page may
be used with proper attribution.
About First American Data & Analytics
First American Data & Analytics, a division of First
American Financial Corporation, is a national provider of
property-centric information, risk management and valuation
solutions. First American maintains and curates the industry’s
largest property and ownership dataset that includes more than 8
billion document images. Its major platforms and products include:
DataTree®, FraudGuard®, RegsData®, First American TaxSource™ and
ACI®. Find out more about how First American Data & Analytics
powers the real estate, mortgage and title settlement services
industries with advanced decisioning solutions at
www.FirstAmDNA.com.
About First American
First American Financial Corporation (NYSE: FAF) is a
premier provider of title, settlement and risk solutions for real
estate transactions. With its combination of financial strength and
stability built over more than 135 years, innovative proprietary
technologies, and unmatched data assets, the company is leading the
digital transformation of its industry. First American also
provides data products to the title industry and other third
parties; valuation products and services; mortgage subservicing;
home warranty products; banking, trust and wealth management
services; and other related products and services. With total
revenue of $6.0 billion in 2023, the company offers its products
and services directly and through its agents throughout the United
States and abroad. In 2024, First American was named one of the 100
Best Companies to Work For by Great Place to Work® and Fortune
Magazine for the ninth consecutive year. The company was named one
of the 100 Best Workplaces for Innovators by Fast Company in 2023.
More information about the company can be found at
www.firstam.com.
1 The most recent index results are subject to revision as data
from more transactions become available.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240820677783/en/
Media Contact: Marcus Ginnaty Corporate Communications
First American Financial Corporation (714) 250-3298 Investor
Contact: Craig Barberio Investor Relations First American
Financial Corporation (714) 250-5214
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