SANTA ANA, Calif., Oct. 16, 2024 – 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 September 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.
September National House Price Index
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First American Analytics’ National Non-Seasonally Adjusted (NSA) HPI |
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|
Metric |
Change in HPI |
|
August - September 2024 (month over month) |
+0.1 percent |
|
September 2023 - September 2024 (year over year) |
+3.9 percent |
Highlights
- House prices nationally are now 54.4 percent higher compared to pre-pandemic levels (February 2020).
- House price growth reported in last month’s HPI for July 2024 to August 2024 was revised down 0.2 percentage points, from 0.1 percent to -0.1 percent.
Chief Economist Analysis:
“Annual house price appreciation nationally slowed for the ninth consecutive month, falling to the slowest pace since the summer of 2023,” said Mark Fleming, chief economist at First American. “While home prices reached a new record high in September, the pace of growth continues to slow. Lower mortgage rates have improved affordability, which will likely stimulate demand in the coming months, especially if rates continue to ease. If housing supply does not increase amid that potential increased demand, it’s possible that price appreciation could accelerate again.”
September 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.
“Price appreciation in 11 metros outpaced the national 3.9 percent annual increase, and house prices increased year over year in most markets we track as well,” said Fleming. “The ongoing price pressures in the starter home price tier across many markets highlights strong demand from first-time home buyers now armed with improved house-buying power, who face limited inventory at this price point.”
September 2024 First American Data & Analytics Price Tier HPI Highlights
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Core-Based Statistical Areas (CBSAs) Ranked by Greatest Year-Over-Year Increases in Starter Home HPI |
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CBSA |
Change in Starter Tier HPI |
Change in Mid-Tier HPI |
Change in Luxury Tier HPI |
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St. Louis |
+10.5 percent |
+2.6 percent |
+1.3 percent |
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Warren, Mich. |
+8.0 percent |
+4.0 percent |
+4.9 percent |
|
Baltimore |
+7.1 percent |
+6.3 percent |
+5.3 percent |
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Cambridge, Mass. |
+6.9 percent |
+3.4 percent |
+5.5 percent |
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Pittsburgh |
+6.7 percent |
+7.7 percent |
+4.1 percent |
Additional September 2024 First American Data & Analytics HPI Highlights
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Core-Based Statistical Areas (CBSAs) with Greatest Year-Over-Year Increases in HPI |
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|
CBSA |
Change in HPI |
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Anaheim, Calif. |
+7.0 percent |
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Pittsburgh |
+6.3 percent |
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Miami |
+5.3 percent |
|
Cambridge, Mass. |
+5.2 percent |
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Seattle |
+5.1 percent |
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Core-Based Statistical Areas (CBSAs) with a Year-Over-Year Decrease in HPI |
|
|
CBSA |
Change in HPI |
|
Oakland, Calif. |
-5.8 percent |
|
Tampa, Fla. |
-0.3 percent |
|
Denver |
-0.3 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 November 18, 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.
[1] The most recent index results are subject to revision as data from more transactions become available.
[2] The HPI for non-disclosure states and markets that fall within non-disclosures states are not included in this month’s HPI report.
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 130 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 2023, First American was named one of the 100 Best Companies to Work For by Great Place to Work® and Fortune Magazine for the eighth consecutive year and was named one of the 100 Best Workplaces for Innovators by Fast Company. More information about the company can be found at www.firstam.com.
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