FHFA Home Price Index Increases 4.5% Year-Over-Year in Q4

On Tuesday, the Federal Housing Finance Agency (FHFA) reported that according to its House Price Index (FHFA HPI), US house prices rose 4.5% year-over-year in Q4. Compared to Q3, prices were up 1.4%.

FHFA’s seasonally adjusted monthly index for December was up 0.4% from November.

All nine geographic divisions defined by the US Census Bureau had positive house prices changes on an annual basis in Q4. The Middle Atlantic division recorded the strongest appreciation, up 7.1%, while the West South Central division recorded the smallest appreciation, up 2.3%.

FHFA notes that the housing market has experienced positive annual appreciation each quarter since the start of 2012. According to the FHFA HPI, prices rose in 49 states between 2023Q4 and 2024Q4. The five states with the highest annual appreciation were Connecticut, up 8.3%; New Jersey, up 8.3%; Wyoming, up 8.1%; Vermont, up 8.1%; and Rhode Island, up 7.6%. House prices declined 2.0% in Mississippi.

Commenting on the report, Anju Vajja, Deputy Director for FHFA’s Division of Research Statistics, said:

“US house prices grew at a slightly higher rate in the fourth quarter after three straight previous quarters of weaker appreciation. The price growth accelerated during the quarter as the inventory of homes for sale tightened even further.”