National Year-over-Year (YoY) HPA in December was 5.9% and is projected to be 5.4% and 4.7% in January and February 2024

WASHINGTON, Jan. 24, 2024 (GLOBE NEWSWIRE) -- National constant-quality home prices in December 2023 were down 0.6% from a month ago but up 5.9% from a year ago (not seasonally-adjusted), according to data from the American Enterprise Institute’s (AEI) Housing Center. Despite subdued demand and relatively high rates, the Year-over-Year (YoY) HPA bottomed out in April 2023 and is projected to be 5.4% and 4.7% in January and February 2024.

December YoY HPA varied significantly among the 60 largest metros (see #1 in graphic). It ranged from -6.3% in Austin (-9.7% inflation-adjusted) to 11.6% in Milwaukee (+8.2% inflation-adjusted).

Over 2023, higher rates impacted home prices differently across the regions (see #2 in graphic). The West, where home prices have either been historically or recently become unaffordable, was hit the hardest by the rising rates at the beginning of 2023 (-3.7% YoY HPA in April).

Historically, low price tier HPA has outpaced HPAs for the upper price tiers. This trend continued in December, with the YoY HPA up 7.2% and 5.2% for the low price tier and high price tier, respectively.

Months’ supply stood at 3.8 months in December 2023, down from 3.9 months in November 2023 but up from 3.5 months in December 2019 (pre-pandemic). (See #3 in graphic). Low levels of supply continue to signal a strong seller’s market. The months’ supply for the low price tier came in at 2.4 months in December 2023, helping to explain the 7.2% YoY price growth for this tier.

The AEI Housing Center provides the most advanced and timely information on home prices available. Measures of home price appreciation like the Case Shiller index have months of lag. The Housing Center has published data for December 2023 and is able to accurately project January and February 2024 with Optimal Blue rate lock data as well.

National Home Price Appreciation (HPA) Index – December 2023

Media Contact Details:

Sissi Li
American Enterprise Institute Housing Center
Washington, DC

A photo accompanying this announcement is available at

December 2023 Press Release Infographic v2 (1)