Year-over-year shift (i.e., 12-month shift) in national home prices
Case-Shiller —> +4.3% (decelerated from +6.2% in January 2024)
FHFA —> +4.2% (decelerated from +6.7% in January 2024)
Freddie Mac —> +3.6% (decelerated from +6.7% in January 2024)
Zillow —> +2.4% (decelerated from +3.6% in January 2024)
In 2024, Sun Belt housing markets, in particular, have begun to soften again. Strained housing affordability and slowed migration have suppressed housing demand. That reduced housing demand, combined with competition from homebuilders—who, where and when needed, are using affordability adjustments like buydowns to maintain sales—has caused active inventory in the resale market to rise year-over-year, especially in Sun Belt markets.
According to Zillow: Home prices are up 2.6% from the peak in 2022 and up 44.6% since March of 2020
Source: ResiClub
Following Elections
Results and a Fed Rate Cut,
Mortgage Rates Stall
After a six-week climb, rates have leveled off, but overall affordability continues to be an issue for potential homebuyers. Freddie Mac’s latest research shows that mortgage payments compared to rents on the same homes are elevated relative to most of the last three decades.
