The South experienced its first home price drop in months, according to new data from the Federal Housing Finance Agency (FHFA) seasonally adjusted monthly House Price Index (HPI®).
- M-O-M: Home prices in the South fell by 0.7% in July, marking the first decline since January. This drop comes after a 0.2% increase in June.
- Y-O-Y: U.S. home price growth slowed to 3.6% in July, down from 5.7% in June. This marks the slowest annual increase since April 2023.
Nationally, U.S. home prices managed to rise slightly by 0.1% during the same period, with the South Atlantic region showing the steepest decline among the nine U.S. census regions.
- U.S. home price were up 4.5% compared to the same time last year, reflecting some resilience despite some regional dips.
- New England and East North Central led the nation with 0.9% monthly gains in July.
The Bottom Line: The South’s first price drop in months is a notable shift in a region that has seen rapid growth in recent years. With home price growth cooling across the country, the housing market may be entering a more tempered phase.
