Breaking: US house prices up 4.3% YoY in Q3 2024 on strong demand.

U.S. house prices appreciated 4.3% from Q3 2023 to Q3 2024 and 0.7% from the second quarter of 2024, according to the House Price Index from the Federal Housing Finance Agency. This consistent growth reflects strong demand outpacing limited supply; high mortgage rates have made the growth in appreciation slower compared to previous quarters.

The annual increase in home prices was led by Hawaii, at 10.4%, followed by Delaware and Rhode Island, with an 8.5% and 8.4% increase, respectively. In nine Census Divisions, all recorded positive year-over-year price changes. At the metro statistical area level, the biggest price gain occurred in Miami-Miami Beach-Kendall, FL, where prices increased 10.8%; the deepest decline occurred in North Port-Sarasota-Bradenton, FL, which decreased 6.4%. The East North Central census division had the largest one-year increase in its index at 6.8%.

The FHFA report is one in a series that serves to indicate the enduring strength of the US housing market in the face of increasing mortgage rates and economic uncertainty. Further house price increases likely will remain stable but subdued by continued affordability squeezes on prospective purchasers.