Houston-The Woodlands-Sugar Land Home Prices Up 5% Year Over Year in February, According to First American Data & Analytics Monthly Home Price Index Report
—National, Annualized Home Price Appreciation Slows for Second Straight Month, Falling by Almost a Full Percentage Point—
In the
February National House Price Index Highlights
The First American Data & Analytics’ non-seasonally adjusted (NSA) HPI showed that nationally in February1 2024:
-
House prices increased 0.7 percent between
January 2024 andFebruary 2024 . -
House prices increased 6.3 percent between
February 2023 andFebruary 2024 , the slowest annual pace sinceOctober 2023 . -
House prices are now 50 percent higher compared to pre-pandemic levels (
February 2020 ). -
House price growth reported in last month’s HPI for
December 2023 toJanuary 2024 was revised up 0.1 percentage points, from 0.3 percent to 0.4 percent.
“After reaching a recent peak in December, annualized home price appreciation slowed for the second consecutive month, bringing more clarity to the trajectory for price appreciation in 2024. In February, our preliminary estimate of annualized appreciation dropped by almost a full percentage point,” said
Year-Over-Year Price-Tier Data for the
The First American Data & Analytics HPI segments home price changes at the metropolitan level into three price tiers based on local market sales data: starter tier, which represents home sales prices at the bottom third of the market price distribution; mid-tier, which represents home sales prices in the middle third of the market price distribution; and the luxury tier, which represents home sales prices in the top third of the market price distribution.
CBSA |
Starter |
Mid-Tier |
Luxury |
|
5.8% |
5.0% |
4.9% |
“Nationally, starter-home price appreciation remains strong as first-time home buyers hunt for homes to buy from current starter homeowners, who are the most sensitive to the rate lock-in effect and unable or unwilling to list their home for sale to fuel a move-up purchase. The lack of mid-tier move-up demand is significantly weakening price appreciation in the mid-market," said Fleming. “Mid-tier prices for the markets we track are mostly flat compared with a year ago and down by more than 3 percent in
-
The five most populous states experienced the following year-over-year growth in the HPI:
Pennsylvania (+7.9 percent),New York (+5.3 percent),Florida (+4.9 percent),Texas (+4.8 percent), andCalifornia (+4.7 percent). - There were no states with a year-over-year decrease in the HPI.
- Full 50-state HPI data is available here.
Visit the First American Economic Center for more research on housing market dynamics.
Next Release
The next release of the First American Data & Analytics House Price Index will take place the week of
First American Data & Analytics HPI Methodology
The First American Data & Analytics HPI report measures single-family home prices, including distressed sales, with indices updated monthly beginning in 1980 through the month of the current report. HPI data is provided at the national, state and CBSA levels and includes preliminary index estimates for the month prior to the report (i.e. the preliminary result of July transactions is reported in August). The most recent index results are subject to revision as data from more transactions become available.
The HPI uses a repeat-sales methodology, which measures prices changes for the same property over time using more than 46 million paired transactions to generate the indices. In non-disclosure states, the HPI utilizes a combination of public sales records, MLS sold and active listings, and appraisal data to estimate house prices. This comprehensive approach is particularly effective in areas where there is limited availability of accurate sale prices, such as non-disclosure states. Property type, price and location data are used to create more refined market segment indices. Real Estate-Owned transactions are not included.
Disclaimer
Opinions, estimates, forecasts and other views contained in this page are those of First American’s Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First American’s business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2024 by First American. Information from this page may be used with proper attribution.
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1 The most recent index results are subject to revision as data from more transactions become available.
2 The HPI for non-disclosure states and markets that fall within non-disclosures states are not included in this month’s HPI report.
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Source: First American Data & Analytics