Want to make a profit on your home? Study shows the 20 US metros where prices are rising fastest
Do you want to make a profit on your home? Study shows the 20 US metros where prices are rising the fastest
- House prices are projected to rise by 3.4 percent over next year
- This is less than the increase between August 2022 and 2024: 3.7 percent
- Metros in Washington, Oregon and Wyoming would see the most growth
Home prices rose for the 139th consecutive month in August – although experts expect growth to slow next year.
The cost of homes was 3.7 percent higher than the previous year – spurred in part by a healthy labor market. However, year-on-year house price growth is forecast to ease to 3.4 percent in August 2024, according to the real estate analyzes and data company CoreLogic.
Researchers have identified a handful of metro areas expected to see home price appreciation of more than 7 percent.
In the Seattle-Bellevue-Everett metro area in Washington, home prices were forecast to see an average appreciation of 8.58 percent. It was followed by Grants Pass, Oregon, and Casper, Wyoming, with predicted growth rates of 7.78 and 7.73 percent, respectively.
According to the August 2023 CoreLogic Home Price Index Forecast, a handful of metro areas are expected to see home price growth of more than 7 percent over the next year.
CoreLogic Chief Economist Selma Hepp said: ‘While continued mortgage rate increases challenge affordability across US housing markets, home price growth is in line with typical seasonal averages,’
She added that growth was the result of ‘strong demand supported by a healthy labor market, strong wage growth and supportive demographic trends’.
September’s jobs report, released last week by the US Bureau of Labor Statistics, suggested America added 336,000 jobs, raising concerns about the ongoing battle against inflation.
“Still, with a slower buying season ahead and the rising cost of home ownership, additional monthly price gains may decline,” Hepp said.
The latest projections come after month-over-month home price appreciation fell to an 11-year low in the spring of 2023, according to CoreLogic. But in some markets, gains are starting to pick up again.
In August, although some states continued to show a depreciation from the previous month, housing markets in New England began to heat up, especially in New Hampshire, Maine, Vermont and Rhode Island.
The index uses a variety of property databases and 45 years of repeat transactions to analyze house price trends.
In the Seattle-Bellevue-Everett metro area in Washington, home prices would increase by an average of 8.58 percent between August 2023 and August 2024.
This month, data from real estate portal Zillow showed that their asking prices were reduced by 9.2 percent of listings in the week to September 23
Last year, between August 2022 and August 2023, Miami was the metro area where home prices rose the most – 8.3 percent.
It was followed by Chicago, San Diego and Washington DC, with year-over-year price changes of 5.1, 4.3 and 4.1 percent, respectively.
Data from real estate portal Zillow this month showed asking prices were reduced by 9.2 per cent of listings in the week to September 23 – compared to 6 per cent in April and 7.9 per cent in the same week in September 2019.
Jeff Tucker, Zillow senior economist, wrote in a report: ‘For determined buyers, with enough budget room to accommodate the recent jump in mortgage rates, this fall looks more and more like a sweet spot.
“Overall, there are more motivated sellers and more active listings than at any time since last December, improving buyers’ chances of finding the right match.”