South and West Dominate Home Price Growth

Charlotte, NC, September 9, 2024-Home prices nationally, grew mid-single digits in the second quarter on negative year-over-year (y/y) comparables, reports Truist. 

“However, this varied significantly by metro area. According to a recent NAHB analysis, home prices in the second quarter by metro area ranged from a 4.6% y/y decline (Elmira, New York) to a 20.7% y/y gain (Pittsfield, Massachusetts). In terms of some notable metro areas, we note that Florida and Texas did see some price declines. We have been monitoring both states on the heels of some meaningful inventory increases so far this year. However, the majority of metro areas in both states are still positive. Note that the South and West regions dominated the top 20 highest growing metro areas, with 11 and six MSAs in the top 20, respectively. There were three Northeast cities in the top 20 and no cities from the Midwest. On a state-by-state basis, all 50 were positive during the quarter. West Virginia saw the most appreciation, growing 10.4% y/y, while Louisiana experienced the slowest growth at just 1.5% y/y. On a sequential basis 35 out of 50 states experienced a deceleration in home price gains versus the first quarter.”