Houston-The Woodlands-Sugar Land Home Prices Up 3.4% Year Over Year in June, According to First American Data & Analytics Monthly Home Price Index Report

Rhea-AI Summary

First American Data & Analytics released its June 2024 Home Price Index (HPI) report, revealing that Houston-The Woodlands-Sugar Land home prices increased by 3.4% year-over-year. The national HPI showed a 5.6% year-over-year increase, with prices hitting another record high. However, annualized house price appreciation slowed for the sixth consecutive month.

Key highlights for the Houston metro area include:

• Month-over-month HPI change: +0.4%
• Starter tier homes: +4.6% year-over-year
• Mid-tier homes: +2.4% year-over-year
• Luxury tier homes: +4.2% year-over-year

Chief Economist Mark Fleming noted that elevated mortgage rates continue to impact affordability and keep homeowners rate locked-in, while an uptick in supply is cooling price growth. However, the fundamental undersupply of housing nationally is expected to maintain a floor on house price appreciation.

National House Price Growth Slows for Sixth Consecutive Month

—Cooling Trend Likely to Persist, but Don’t Expect Major House Price Declines, says Chief Economist Mark Fleming—

SANTA ANA, Calif.--(BUSINESS WIRE)-- 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 June 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.

June1 Home Price Index
Houston-The Woodlands-Sugar Land Market
Metric	Change in HPI
May-June 2024 (month over month)	+0.4 percent
June 2023-June 2024 (year over year)	+3.4 percent
National HPI
Metric	Change in HPI
May-June 2024 (month over month)	+0.2 percent
June 2023-June 2024 (year over year)	+5.6 percent

Chief Economist National HPI Analysis:

“In June, home prices continued their upward trend and hit another record high, but annualized house price appreciation slowed for the sixth consecutive month. Elevated mortgage rates continue to keep homeowners rate locked-in, while reducing affordability for potential first-time home buyers,” said Mark Fleming, chief economist at First American. “The resulting pullback in demand coincided with an uptick in supply, which is cooling price growth. However, housing remains fundamentally undersupplied nationally, which will keep a floor on how low house price appreciation can fall.”

Year-Over-Year Price-Tier Data for the Houston-The Woodlands-Sugar Land Metro Area: June 2023 to June 2024

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.

CBSA	Starter	Mid-Tier	Luxury
Houston-The Woodlands-Sugar Land	4.6%	2.4%	4.2%

“High-end home buyers are more immune to mortgage rate fluctuations, and many existing homeowners are sitting on substantial equity that can be used to finance a bigger and better property. As a result, house prices in the luxury price tier increased on an annual basis in all 30 markets tracked."

June 2024 First American Data & Analytics Price Tier HPI Highlights
Core-Based Statistical Areas (CBSAs) Ranked by Greatest Year-Over-Year Increases in Luxury Tier HPI
CBSA	Change in Starter Tier HPI	Change in Mid-Tier HPI	Change in Luxury Tier HPI
Anaheim, Calif.	+6.1 percent	+10.1 percent	+13.0 percent
Miami	+7.2 percent	+10.7 percent	+8.8 percent
San Diego	+3.0 percent	+7.8 percent	+8.0 percent
Las Vegas	+6.8 percent	+6.1 percent	+8.0 percent
Atlanta	+5.9 percent	+3.7 percent	+7.6 percent

Additional June 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.	+10.2 percent
Miami	+8.9 percent
Pittsburgh	+6.5 percent
Las Vegas	+6.4 percent
San Diego	+6.2 percent
There were no CBSAs with a Year-Over-Year Decrease in HPI

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 August 19, 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.

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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

Source: First American Financial Corporation

FAQ

What was the year-over-year home price change for Houston-The Woodlands-Sugar Land in June 2024?

According to the First American Data & Analytics HPI report, Houston-The Woodlands-Sugar Land home prices increased by 3.4% year-over-year in June 2024.

How did First American Financial (NYSE: FAF) report national home price growth in June 2024?

First American Financial (NYSE: FAF) reported that national home prices increased by 5.6% year-over-year in June 2024, hitting another record high despite slowing annualized appreciation for the sixth consecutive month.

What were the price tier changes for Houston-The Woodlands-Sugar Land from June 2023 to June 2024?

For Houston-The Woodlands-Sugar Land, the starter tier increased by 4.6%, the mid-tier by 2.4%, and the luxury tier by 4.2% from June 2023 to June 2024.

Which Core-Based Statistical Area (CBSA) had the highest year-over-year increase in HPI according to First American's June 2024 report?

According to First American's June 2024 report, Anaheim, California had the highest year-over-year increase in HPI at 10.2%.

What factors did First American's Chief Economist cite as influencing home prices in June 2024?

First American's Chief Economist cited elevated mortgage rates, reduced affordability, rate lock-in effect on homeowners, an uptick in supply, and fundamental undersupply of housing as factors influencing home prices in June 2024.