SANTA ANA, Calif. — First American Data & Analytics, a leading national provider of property-centric information, risk management and valuation solutions and a division of First American Financial Corporation (NYSE: FAF), today released its January 2024 Home Price Index (HPI) report. The report tracks home price changes less than four weeks behind real time at the national, state and metropolitan (Core-Based Statistical Area) levels and includes metropolitan price tiers that segment sale transactions into starter, mid and luxury tiers. The full report can be found here.
Los Angeles-Long Beach-Glendale HPI
In the Los Angeles-Long Beach-Glendale CBSA, home prices increased by 5.6 percent in January compared with a year ago and decreased 0.7 percent compared with December 2023. See below for price-tier data.
January National House Price Index Highlights
The First American Data & Analytics’ non-seasonally adjusted (NSA) HPI showed that nationally in January1 2024:
- Between December 2023 and January 2024 house prices increased 0.3 percent.
- House prices increased 7.2 percent between January 2023 and January 2024.
- House prices reached a new peak for the tenth month in a row in January 2024.
- Annual house price growth peaked in December 2023 at 7.7 percent.
“The pace of annualized home price appreciation peaked in December, as buyers rushed to take advantage of falling mortgage rates. In January, the preliminary estimate of annualized appreciation cooled modestly by half a percent and is likely to slow down further in the coming months,” said Mark Fleming, chief economist at First American. “Despite concern that house prices could decline significantly at the beginning of 2023, rate-locked potential home sellers kept supply tight, maintaining pressure on prices. Optimism that mortgage rates will fall in 2024 may incent more homeowners to sell, boosting supply and, in turn, improving affordability for buyers. While more supply and improved affordability should cool post-pandemic hot house price appreciation, 2024 may still be the year that house price appreciation doesn’t get too cold, but closer to just right.”
Year-Over-Year Price-Tier Data for the Los Angeles-Long Beach-Glendale Metro Area:
January 2023 to January 2024
The First American Data & Analytics HPI segments home price changes at the metropolitan level into three price tiers based on local market sales data: starter tier, which represents home sales prices at the bottom third of the market price distribution; mid-tier, which represents home sales prices in the middle third of the market price distribution; and the luxury tier, which represents home sales prices in the top third of the market price distribution.
CBSA
Starter
Mid-Tier
Luxury
Los Angeles-Long Beach-Glendale
7.0%
6.5%
5.1%
“While house prices increased in all 30 markets tracked by our index over the last year, this rising tide hides the change in market prices since their peak. Measuring the price change in each market from their post-pandemic peak reveals that house prices are below their prior peaks in 23 of the top 30 markets. Notably, house prices are currently 6 percent or more below their prior peak in six markets, with the largest price declines from peak in Oakland (-13.5 percent), Austin, Texas (-9.9 percent), and Seattle (-9.2 percent).”
January 2024 House Price State2 Highlights
The five most populous states experienced the following year-over-year growth in the HPI: Pennsylvania (+8.4 percent), Florida (+6.1 percent), Texas (+5.3 percent), California (+4.4 percent), and New York (+4.4 percent).
There were no states with a year-over-year decrease in the HPI.
Full 50-state HPI data is available here.
Visit the First American Economic Center for more research on housing market dynamics.
The next release of the First American Data & Analytics House Price Index will take place the week of March 18, 2024.
First American Data & Analytics HPI Methodology
The First American Data & Analytics HPI report measures single-family home prices, including distressed sales, with indices updated monthly beginning in 1980 through the month of the current report. HPI data is provided at the national, state and CBSA levels and includes preliminary index estimates for the month prior to the report (i.e. the preliminary result of July transactions is reported in August). The most recent index results are subject to revision as data from more transactions become available.
The HPI uses a repeat-sales methodology, which measures prices changes for the same property over time using more than 46 million paired transactions to generate the indices. In non-disclosure states, the HPI utilizes a combination of public sales records, MLS sold and active listings, and appraisal data to estimate house prices. This comprehensive approach is particularly effective in areas where there is limited availability of accurate sale prices, such as non-disclosure states. Property type, price and location data are used to create more refined market segment indices. Real Estate-Owned transactions are not included.
