Articles

The Federal Housing Finance Agency published the 2024 Q2 Housing Price Index report and national data shows home prices rose 5.7% between the second quarter of 2023 and the second quarter of 2024. House prices were up 0.9% compared to the first quarter of 2024. 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 33.79% and 44.33% with all of our regional Metropolitan Statistical Areas experiencing positive gains.

In the past year, home prices in our markets have increased: 3.34% in Iowa City; 5.78% in Cedar Rapids; and 6.81% in the Quad Cities. This compares to other cities: Des Moines 5.79% and Chicago 7.53%. 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 saw the third consecutive slowdown in quarterly growth,” said Dr. Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics. “The slower pace of appreciation as of June end was likely due to higher inventory of homes for sale and elevated mortgage rates.”

“Despite the challenges of lower sales driven by higher interest rates and limited supply, our region has seen strong and steady home price appreciation. The recent drop in interest rates has made homeownership more affordable, even with increased values. As rates continue to improve, we anticipate rising demand, more move-up sellers, and a strong fourth quarter with increased activity from both buyers and sellers,” said Chris Beason, President of Ruhl&Ruhl Realtors.