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The Federal Housing Finance Agency published the 2023 Q4 Housing Price Index report and national data shows home prices rose 6.5% between the fourth quarter of 2022 and the fourth quarter of 2023. House prices were up 1.5% compared to the third quarter of 2023.

Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.

The five-year home appreciation in our region was between 33.20% and 41.94% with all of our regional Metropolitan Statistical Areas experiencing positive gains.

In the past year, home prices in our markets have increased: +4.09% in Iowa City; +9.10% in Cedar Rapids; and +7.13% in the Quad Cities. This compares to other cities: Des Moines +4.59% and Chicago +6.96%. Of course, there is variation based on price range and location of properties, with more affordable properties appreciating more and
expensive properties appreciating less.

 

“U.S. house prices increased modestly over the course of 2023,” said Dr. Anju Vajja, Acting Deputy Director for FHFA’s Division of Research and Statistics. “However, the market showed signs of softening as house price appreciation was lower in the fourth quarter of the year than in the previous quarter.”

 

“The latest FHFA.gov HPI Report highlights the continued stability of our local housing market, with most areas still experiencing lower than normal inventory levels. While there has been a year-over-year increase in listings, strong buyer demand continues to uphold a consistent supply and demand dynamic, leading to steady overall home price appreciation. However, it's important to recognize that, just as there are significant variations from market to market, individual neighborhoods and price points within our region also experience differing rates of appreciation,” said Chris Beason, President of Ruhl&Ruhl Realtors.