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U.S.home prices continued their climb in December, extending a long-running growth streak and reaching all-time highs, according to data released Tuesday by S&P Dow Jones and the Federal Housing Finance Agency (FHFA).
The FHFA Housing Price Index (HPI) and the S&P CoreLogic Case-Shiller Indices reported annual growth of 4.5 percent and 3.9 percent, respectively, marking yet another quarter of steady appreciation since 2012, according to the FHFA.
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In December, the FHFA HPI recorded a 1.4 percent increase, with the previously reported November gain revised up 0.4 percent. Across nine census divisions, the Mid-Atlantic led the way with a 7.1 percent increase, while the West South Central U.S. saw a more moderate 2.3 percent uptick from Q4 2023 to Q4 2024.
According to the FHFA HPI, Connecticut, New Jersey and Wyoming posted the highest annual price appreciation of 8.3 percent each, while Mississippi saw a price decline of 0.2 percent. Among major metro areas, Urban Honolulu, Hawaii, saw the biggest jump at 18.7 percent, while Cape Coral-Fort Myers, Florida, had the sharpest drop at 6.3 percent.
Dr. Anju Vajju | Deputy Director for FHFA’s Division of Research and Statistics
“U.S. house prices grew at a slightly higher rate in the fourth quarter after three straight previous quarters of weaker appreciation,” Deputy Director for FHFA’s Division of Research and Statistics Dr. Anju Vajja said. “The price growth accelerated during the quarter as the inventory of homes for sale tightened even further.”
Looking at broader city trends, the S&P CoreLogic Case-Shiller Index highlighted New York (up 7.2 percent), Chicago (up 6.6 percent) and Boston (up 6.3 percent) as the fastest-growing markets. The 10-City Composite Index rose 5.1 percent year over year, while the 20-City Composite Index rose 4.5 percent.
“The Northeast continues to lead all regions with above-trend growth, led by New York for the eighth consecutive time,” Brian D. Luke, CFA, Head of Commodities, Real & Digital Assets at S&P Dow Jones Indices said. “Boston reached an all-time high, the only market to do so for the period ended December 2024.”
Brian Luke | Brian D. Luke, CFA, Head of Commodities, Real & Digital Assets at S&P Dow Jones Indices
However, not all markets experienced growth.
“Home prices stalled during the second half of the year with markets in the West dropping the fastest,” Luke said.
“San Francisco, the worst performing market since 2020, dropped 4.5 percent during the last six months of the year, followed by Seattle with a 3 percent decline. San Francisco is now 11 percent lower than its post-pandemic peak reached in May 2022. Previous strongholds like San Diego and Tampa experienced declines of 2.9 percent and 2.7 percent, respectively, during the second half of the year.”
Despite these fluctuations, the S&P CoreLogic Case-Shiller Index continued its growth streak. After seasonal adjustments, the U.S. National, 20-City and 10-City Composite Indices posted month-over-month increases of 0.5 percent.
“After accounting for seasonal adjustments, our National Index pushed forward to achieve a 19th consecutive all-time high,” Luke said. “The longest such streak occurred for over 12 years, notching 153 consecutive all-time highs from July 1993 to March 2006.”
