Home Prices See First Decline in 11 Months

Home prices declined for the first time since in 11 months, according to the latest CoreLogic Home Price Insight report.

• M-O-M: Home prices nationwide declined by -0.1% in December, down for the 0.2% rise in November and the first monthly decline since January.

• Y-O-Y: Despite the monthly decline, home prices to still rose year-over-year to 5.5% in December, up from 5.3% in November and the highest level since

State Of The States: The states with the highest increases year over year were Rhode Island (13.3%), New Jersey (11.3%), and Connecticut (10.5%).

• NOTE: No states saw home price declines.

• METROS: Miami jumped back into double-digits with 10.7% year-over-year growth. This the first time Miami, or any metro, has been in double-digits since May. San Diego took the number two spot with home prices up 8.7% followed by Chicago (+6.8%) and Boston (+6.7%).

Crystal Ball. The CoreLogic HPI Forecast indicates that home prices will decline 0.2% in January from December and prices are likely to still be positive(+2.8%) at the end of this year compared to December 2023.

Analysis. Selma Hepp, Chief Economist for CoreLogic, noted that 2024 should benefit from pent-up demand. “The 2024 homebuying season should enjoy a boost because of pent-up demand, as well as a robust job market and wage growth. Geographic patterns in price gains continued to favor housing markets in the Northeast and the South, especially those that remain more affordable and have lagged in home price increases over the past couple of years.”