The article discusses the recent trends in home prices across the U.S., noting an upward revision in the home price index (HPI) growth rate. Although house prices reached a record high in April 2024, the annual growth rate has declined to the lowest level since 2012, signaling a rebalancing in the housing market. High mortgage rates are suppressing demand while an increase in inventory is aiding supply, which is stabilizing price growth. Regional differences are highlighted, particularly among affordable metropolitan markets attracting first-time buyers, despite ongoing challenges in home affordability.
House prices nationally reached another record high in April, but the annual growth rate has slowed to its lowest level since 2012, underscoring the ongoing rebalancing in the market.
Persistently high mortgage rates have tempered demand, while increased inventory has boosted supply, dragging house price appreciation down.
Markets with the strongest growth in the starter home-price tier are predominantly located in the Northeast or Midwest.
Despite a lot of negative economic headlines, mortgage purchase application data has shown positive year-over-year growth for 14 consecutive weeks.
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