Home Prices See Steady Growth in October: Insights from the S&P CoreLogic Case-Shiller Index

Real Estate Market Update – December 31, 2024

The latest data from the S&P CoreLogic Case-Shiller Index offers a glimpse into the state of the housing market as we near the close of 2024. In October, home prices across the U.S. recorded a 3.6% year-over-year increase—a modest growth compared to the 3.9% gain seen in September. Despite this slight slowdown, the index marked its 17th consecutive month of hitting a record high.

This gradual pace of price appreciation aligns with improving inventory levels, providing some relief for prospective buyers who have been navigating high mortgage rates. Although the growth rate has been easing for seven months in a row, the continued rise in home values shows the market is finding a more sustainable rhythm.

Regional Trends: What’s Driving Growth?

Home price trends vary widely across different regions, reflecting unique local market dynamics.

• South & West Regions:
  Markets like Tampa (+0.39%), Denver (+0.44%), and Dallas (+0.85%) saw minimal year-over-year price growth. These regions are benefiting from inventory levels nearing pre-pandemic norms, which have helped temper price increases.

• Northeast & Midwest Regions:
  In contrast, cities like New York (+7.27%) and Chicago (+6.24%) have been driving national-level price growth. These markets are thriving, attracting both buyers and builders. In fact, homebuilders are shifting their focus to the Northeast, scaling back new construction in the South to meet growing demand in this region.

What’s Next for the Housing Market?

High mortgage rates continue to challenge buyers, making affordability a key issue. Elevated rates have slowed sales and capped price growth, creating a more subdued market environment.

For buyers with significant equity or the ability to self-finance, this market provides opportunities to capitalize on moderate prices and a wider selection of available homes. On the other hand, first-time buyers and those reliant on financing face a tougher path, with affordability concerns limiting their options.

If you're planning to buy in 2025, targeting cities with growing inventory and balanced market conditions may be your best bet. Our Top Housing Markets for 2025 highlights key Southern and Western metros poised for growth in sales and prices next year.

Whether you're buying, selling, or just keeping an eye on the market, staying informed is key. Reach out to us for expert advice and personalized strategies to help you navigate today’s real estate landscape!