Houston-The Woodlands-Sugar Land Home Prices Up 3.9% Year Over Year in May, According to First American Data & Analytics Monthly Home Price Index Report
Affordability Challenges and Influx of Homes for Sale Helping Normalize House Price Appreciation Levels
—'Five D’s’ Driving Homeowners to Sell Despite ‘Higher-for-Longer’ Mortgage Rates, says Chief Economist
May1 2024 Non-Seasonally Adjusted (NSA) HPI
|
|
Metric |
Change in HPI |
April- |
-0.1 percent |
May 2023-May 2024 (year over year) |
+3.9 percent |
National HPI |
|
Metric |
Change in HPI |
April- |
+0.5 percent |
May 2023-May 2024 (year over year) |
+5.9 percent |
Chief Economist National HPI Analysis:
“In May, annualized house price appreciation slowed for the fifth consecutive month, clearly showing a returning-to-normal trend toward slower price appreciation. The normalization of house price appreciation is the result of ‘higher-for-longer’ mortgage rates reducing affordability and slowing demand, but it’s also driven by the increase in the number of homes for sale,” 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 |
|
4.9% |
3.7% |
4.0% |
“The impact of lifestyle changes on housing demand is a significant reason why starter tier prices continue to outperform prices in the mid and luxury tiers," said Fleming. “Many millennials are still searching for their first home and now face competition from the oldest members of
Core-Based Statistical Areas (CBSAs) Ranked by Greatest Year-Over-Year Increases in Starter Tier HPI |
|||
CBSA |
Change in Starter Tier HPI |
Change in Mid-Tier HPI |
Change in Luxury Tier HPI |
|
+14.0 percent |
+12.5 percent |
+5.4 percent |
|
+13.1 percent |
+4.7 percent |
+3.2 percent |
|
+12.3 percent |
+9.0 percent |
+6.2 percent |
|
+11.4 percent |
+4.4 percent |
+2.2 percent |
|
+10.1 percent |
+6.8 percent |
+2.1 percent |
Additional
Core-Based Statistical Areas (CBSAs) with Greatest Year-Over-Year Increases in HPI |
|
CBSA |
Change in HPI |
|
+10.5 percent |
|
+9.5 percent |
|
+8.4 percent |
|
+7.0 percent |
|
+6.7 percent |
There were no CBSAs with a Year-Over-Year Decrease in HPI |
HPI data for all 50 states and the largest 30 CBSAs by population 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.
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