by Calculated Risk on 2/03/2025 11:49:00 AM
Monday, February 03, 2025
ICE Mortgage Monitor: “Lowest calendar year home price growth of any year since 2011”
Today, in the Real Estate Newsletter: ICE Mortgage Monitor: “Lowest calendar year home price growth of any year since 2011”
Brief excerpt:
Here is the year-over-year in house prices according to the ICE Home Price Index (HPI). The ICE HPI is a repeat sales index. ICE reports the median price change of the repeat sales. The index was up 3.4% year-over-year in December.There is much more in the newsletter.
Source: ICE Home Price Index (HPI)
• Annual home price growth edged slightly higher in December, closing out the year at +3.4%There is much more in the mortgage monitor including an extensive analysis of the financial impact of the California wildfires.
• That marks the lowest calendar year home price growth of any year since 2011 when the housing market was nearing its trough following the Great Financial Crisis
• In fact, 2024’s growth was a full percentage point below the +4.4% growth seen in both 2014 and 2018, which were previously the lowest growth years in the past decade
• The modest uptick in December’s annual home price growth rate was a result of softer price gains in late 2023 rolling out of the backward-looking 12-month window, rather than a strengthening of prices in December
• On a seasonally adjusted basis, prices rose by 0.2% in the month, roughly equivalent November, and slightly below October, following the brief dip in 30-year rates to near 6% in the lead-up to the Fed’s 50 bps rate cut in September
• If current seasonally adjusted monthly gains persist, the annual home price growth rate is poised to begin cooling again in the early months of 2025