Freddie Mac Home Price Index: July 2024 Analysis of U.S. Real Estate Markets

September 8,2024: The Freddie Mac Home Price Index (FMHPI) serves as an essential resource for understanding housing price trends across the United States. This index provides detailed data on the performance of housing markets in various metropolitan areas, allowing professionals and analysts to monitor market changes, track inflation, and make informed decisions based on price fluctuations.

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In July 2024, many cities across the U.S. experienced different levels of housing price growth. For instance, Miami saw a remarkable increase in housing prices, with a year-over-year (YoY) rise of 77.7% and a 60.6% increase since July 2022. This significant growth highlights Miami's strong real estate market, driven by high demand and limited inventory. On the other hand, cities like New York saw a more moderate increase in home prices, with a 51.6% YoY growth and 36.8% increase from 2022.

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Some cities showed signs of housing market stabilization or even slight decreases. For example, Riverside, California, had a modest year-over-year decline of 0.8% in May 2024, but over a longer period, prices still increased by 56.7% since 2020. Other markets, such as San Antonio, experienced a minor 0.4% decline in prices from June 2024, but prices had risen 45.3% from January 2020.

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Price trends in the Midwest and Southeast also varied. Detroit, for example, saw an increase of 52.6% YoY, while cities like Cleveland showed a 59.2% increase YoY and a 40.2% increase since 2020. These data points indicate that some areas, especially those with lower starting price points, continue to experience strong price growth. This is possibly fueled by buyers seeking more affordable markets outside of high-cost metropolitan regions.

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Meanwhile, the Western U.S. saw a mix of trends. Cities like Phoenix experienced a drop in home prices by 2.2% YoY in May 2022, but prices had increased by 62% since January 2020. Sacramento experienced similar declines in prices, down by 3.6% in May 2022, yet a long-term increase of 37.3% since January 2020 was recorded. These declines suggest a cooling in what were once some of the hottest real estate markets.

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Additionally, cities like Orlando, Tampa, and Charlotte demonstrated considerable gains, with Tampa witnessing a 73.9% price rise from 2020 to 2024. This highlights a regional trend in Florida, where desirable weather, tax advantages, and increased demand for homes have led to soaring home prices across the state.

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The Freddie Mac Home Price Index thus reflects varying trends across the country, with significant price growth in regions like the Southeast and Midwest, and moderate or declining trends in select Western markets. This variation underscores the importance of tracking regional data when analyzing real estate trends and making investment decisions.