National House Price Growth Slows for Sixth Consecutive Month, 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 a continued slowdown in national house price growth for the sixth consecutive month. Key highlights include:

- National home prices increased by 0.2% month-over-month and 5.6% year-over-year
- Prices are now 54.7% higher compared to pre-pandemic levels
- The luxury price tier showed increases across all 30 markets tracked
- Anaheim, Calif. led with the highest year-over-year increase of 10.2%

Chief Economist Mark Fleming attributes the cooling trend to elevated mortgage rates reducing affordability and increasing supply. However, he notes that fundamental undersupply will likely prevent major price declines. The report also segments price changes into starter, mid, and luxury tiers for various metropolitan areas.

—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 National House Price Index
First American Data & Analytics’ National Non-Seasonally Adjusted (NSA) HPI
Metric	Change in HPI
May-June 2024 (month over month)	+0.2 percent
June 2023-June 2024 (year over year)	+5.6 percent

Highlights

• House prices nationally are now 54.7 percent higher compared to pre-pandemic levels (February 2020).
• House price growth reported in last month’s HPI for April 2024 to May 2024 was revised down 0.1 percentage points, from 0.5 percent to 0.4 percent.

Chief Economist 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.”

June 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.

“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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240716387559/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

Source: First American Financial Corporation

FAQ

What was the national house price growth in June 2024 according to First American's HPI report?

According to First American's June 2024 HPI report, national house prices increased by 0.2% month-over-month and 5.6% year-over-year.

How much higher are house prices compared to pre-pandemic levels as of June 2024?

As of June 2024, house prices are 54.7% higher compared to pre-pandemic levels (February 2020).

Which metropolitan area had the highest year-over-year increase in home prices in June 2024?

Anaheim, California had the highest year-over-year increase in home prices at 10.2% in June 2024.

What factors are contributing to the slowdown in house price growth according to First American's chief economist?

First American's chief economist Mark Fleming attributes the slowdown to elevated mortgage rates reducing affordability and increasing supply, while noting that fundamental undersupply will likely prevent major price declines.

How did the luxury price tier perform across markets in First American's June 2024 HPI report?

The luxury price tier showed increases in house prices across all 30 markets tracked in First American's June 2024 HPI report.