US Home Prices Hit Another Record High in March
HPI Quarterly and Annual Data
The Federal Housing Finance Agency (FHFA) reported that U.S. house prices rose 6.6% between Q1 2023 and Q1 2024. Compared to Q4 2023, house prices were up 1.1%. The seasonally adjusted monthly index for March showed a 0.1% increase from February. According to Dr. Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics, low inventory has supported house price appreciation despite mortgage rates hovering around 7%.
State and Metropolitan Trends
Nationally, house prices have appreciated annually each quarter since 2012. Over the past year, house prices rose in all 50 states. Vermont saw the highest appreciation at 12.8%, followed by New Jersey at 11.6%, New York at 10.9%, Delaware at 10.7%, and Wisconsin at 9.9%. The District of Columbia was the only area with a decline, falling by 1.5%.
In the top 100 metropolitan areas, 97 experienced price increases. The Allentown-Bethlehem-Easton area had the highest annual increase at 16.0%, while Urban Honolulu saw the largest decline at -3.2%.
Regional Performance
All nine U.S. census divisions reported year-over-year price increases. The Middle Atlantic division led with a 9.9% increase, while the West South Central division had the smallest gain at 3.7%.
Reports Summary
Given the persistent low inventory and steady demand, the U.S. housing market is expected to remain bullish. Despite high mortgage rates, price appreciation is likely to continue in the short term, driven by robust buyer interest and limited supply.
