According to the CoreLogic Home Price Index, U.S. home prices experienced a nationwide increase of 2.5% annually in July. However, this positive trend did not extend to the West Coast, as 11 states in that region saw a decline in home prices.
On a month-over-month basis, home prices rose by 0.4%. CoreLogic predicts that home prices throughout the country will continue to rise, with an expected national increase of 3.5% by July 2024.
Among the 11 states experiencing falling home prices, Idaho led the way with a decline of 5.7% on an annual basis. Nevada and Montana also experienced price drops of 4.2% and 3.6%, respectively. Other states that saw declines were Washington (-3.3%), Arizona (-2.9%), Utah (-2.8%), Oregon (-1.2%), Colorado (-0.6%), Texas (-0.6%), Wyoming (-0.5%), and California (-0.3%).
Potential for Reversal
CoreLogic suggests that although the 11 states witnessing declines are all located in the West, this trend may be temporary due to inventory shortages in many of these markets. Recent buyer competition is expected to drive up prices again, and CoreLogic’s analysts anticipate gains in these states by October.
California led the nation with the highest median sales price for a single-family home at $700,000. Washington, D.C., followed with a median sales price of $670,000, while Massachusetts recorded a median sales price of $590,000. These figures significantly surpass the nationwide median sales price of $375,000.
East Coast Strongholds
On the East Coast, there was strong price growth across multiple regions. Vermont experienced the highest annual increase in home prices at 8.5%, with New Hampshire and New Jersey following closely at 7.3% growth.
Among major metropolitan areas, Miami observed the highest growth in home prices, with a 9% increase in June. St. Louis came next with a 4.8% growth, closely followed by Detroit at 4.5%.
Markets with Potential Risk
CoreLogic also identified the real estate markets with the highest risk of home-price drops. Provo-Orem, Utah was ranked as the most susceptible, followed by Spokane-Spokane Valley, Washington, and the Cape Coral-Fort Myers metropolitan area in Florida, which ranked third.