U.S. home prices rose 0.6% in the month of January from the previously reported number and slightly faster than the 0.5% growth seen in the prior three months. Year over year, the U.S. housing market grew by $2.5 trillion in 2024, a 5.2% year-over-year increase, marking the slowest annual growth since 2019, but still a strong number. Despite an increase in homes for sale, prices continued to rise due to demand outpacing supply. The total market value peaked at $50.4 trillion in July before dipping to $49.7 trillion due to seasonal trends.
Millennials now own over 20% of the U.S. housing market, with their total home value rising nearly 19% to $9.7 trillion, outpacing other generations. Boomers still hold the largest share at 41.1%.
Redfin Senior Economist Sheharyar Bokhari noted that January’s price growth reflects homes that went under contract in December. Since then, sales have slowed while listings have increased. This shift could lead to slower price growth ahead, as homes are staying on the market slightly longer and selling at nearly 2% below the list price, the biggest discount in nearly two years. But, as demand grows into the spring season and as rates decrease, home pricing could turn up the heat as we get deeper into 2025.
Source : https://bit.ly/4i1Tvsx
By: Jon Iacono