by Calculated Risk on 4/07/2025 12:28:00 PM

Today, in the Real Estate Newsletter: ICE Mortgage Monitor: Home Prices Continue to Cool

Brief excerpt:

Note: I made a mistake last week and posted this prior to the embargo lifting. My apologies to Intercontinental Exchange and all my readers.

House Price Growth Continues to Slow

Here is the year-over-year in house prices according to the ICE Home Price Index (HPI). The ICE HPI is a repeat sales index. ICE reports the median price change of the repeat sales. The index was up 2.7% year-over-year in February, down from 3.4% YoY in January.

• Home price growth is beginning to cool as modestly improved demand is running up against higher levels of inventory across most major markets

• The annual home price growth rate dipped to +2.7% in February from +3.4% the month prior, marking the sharpest single month of deceleration in the annual home price growth rate since early 2023, 2023, with an early look at March data via ICE's enhanced Home Price Index suggesting that price growth has cooled further to +2.2%

• On a seasonally adjusted basis, home prices rose by +0.11% in the month, equivalent to a seasonally adjusted annualized rate of +1.3%, the softest such growth in five months

• In simple terms, that means that if the current rate of monthly growth we’ve seen in recent months were to persist, it would result in annual home price growth continuing to slow as we make our way through Q1 and into Q2 2025

There is much more in the mortgage monitor.

There is much more in the newsletter.

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