In 2024, the rate of annual home-price increases fell significantly from previous years, peaking at 6.6% in February and markedly lower than 2022's double-digit hikes. High mortgage rates and prices have contributed to persistent affordability challenges, affecting the pace of growth. While some metropolitan areas, like New York and Chicago, experienced notable appreciation, many markets showed month-over-month declines as inventory surged. This rise has not boosted sales, largely due to continued strain on affordability and uncertainty surrounding economic policies. Overall, a more stable market is reflecting ongoing shifts in buyer leverage and urban-rural dynamics.
The trend of falling annual home-price increases continued in 2024, with affordability challenges exacerbating the slowdown and leading to a more stable market overall.
Despite a peak of 6.6% in February, home price growth is expected to slow as higher mortgage rates persist, affecting affordability and buyer activity.
Regional dynamics revealed that urban price appreciation outpaced more rural areas, indicating that metropolitan demand remains strong despite overall market pressure.
A significant rise in housing inventory hasn't driven sales to increase, as potential buyers remain cautious due to high mortgage rates and economic uncertainty.
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