Home Price Growth Slows for the 2nd Month

Home prices across the U.S. continued to grow in March, albeit at a slower pace for the second consecutive month, indicating a subtle shift in the housing market dynamics, the latest CoreLogic Home Price Insight report reveals.

By the numbers: Nationwide, home prices rose 5.3% year-over-year in March, a slight decrease from the 5.5% annual increase recorded in February. This marks the lowest growth rate since November 2023. Despite the overall slowdown, prices did climb 1.2% from February to March, mirroring trends reported in the ICE Mortgage monitor which also noted a 1.2% monthly price increase.

State spotlight: New Jersey emerged as the leader in home price increases, with a remarkable 12.2% rise over the past year. South Dakota and New Hampshire followed with increases of 11.5% and 10.6%, respectively.

Metro movers: On the metropolitan level, Miami continued its hot streak for the 32nd month, leading with a 10.6% year-over-year increase. San Diego and Chicago were also among the top performers, with price gains of 9.4% and 8.2%, respectively.

What they’re saying: “Home prices increased again this March beyond the typical seasonal uptick, despite mortgage rates reaching this year’s high and the affordability crunch continuing to keep many prospective buyers on the sidelines,” said Selma Hepp, chief economist for CoreLogic.

The big picture: The continued growth in home prices, albeit at a slower pace, underscores the underlying strength of the housing market. However, the convergence of rising mortgage rates and higher home prices is likely to test the market’s resilience, potentially tempering buyer enthusiasm as affordability challenges persist.