Home Price Growth Slowed for 3rd Straight Month in April

Home price growth slowed for the third straight month, according to the latest data from CroeLogic. Home prices rose by 1.1% in April, slightly down from the 1.2% increase in March, yet still marking the second-highest increase over the past year. Despite this, year-over-year price growth slowed for the third straight month, falling to 5.0% in April from 5.3% in March—the lowest level since October 2023.

Miami Falls To #2: The biggest news in April’s report was Miami losing its top spot for the first time in 21 months. San Diego claimed the highest year-over-year price growth at 9.9%, followed closely by Miami at 9.7%, with Chicago rounding out the top three with an 8.0% increase in April.

What They’re Saying: Selma Hepp, Chief Economist for CoreLogic, attributed the slowdown to higher mortgage rates, which have tempered the typically robust spring buying season. “The April uptick in mortgage rates to this year’s high has cooled some of the typical spring homebuyer demand, pulling monthly gains of 1.1% below the March-to-April average,” Hepp noted. She also highlighted buyers’ increased sensitivity to rising interest rates and the anticipation that future lower rates will alleviate the current affordability crunch.

Looking Ahead: According to the CoreLogic HPI Forecast, home prices are expected to rise by 0.8% from April 2024 to May 2024 and increase by 3.4% on a year-over-year basis from April 2024 to April 2025.