This year, the housing market evolved in ways that few anticipated. Affordability tumbled to the lowest level in decades despite home price growth slowing from previous years. Growth in home prices continued, but there were stark divisions between the areas of the country with gains and areas that were at risk of price declines. Home price growth forecasts responded to these headwinds with year-over-year outlooks dipping deeply mid-year before recovering slightly in Q3.

Cotality’s economy team compiled a snapshot of this year’s major trends.

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Home price growth cooled in 2024

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Although home prices continue to increase throughout the U.S., they are doing so at a much slower pace than in previous years. Inflationary pressures, high interest rates, and affordability concerns have led to less overall homebuying demand.

Nevertheless, following a summertime slump, home prices did see a slight bump in October. While Cotality economists do not expect to see dramatic swings in home prices during the winter, the spring 2025 housing market may tell a different story.

“In the last few years, springtime has seen home prices jump higher than before the pandemic despite elevated mortgage rates,” explained Cotality Chief Economist Selma Hepp.

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A nation divided by price growth

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Although home prices rose 3.4% over the year (October 2023 – October 2024), not all markets saw equal gains. For much of the year, the Northeast saw substantially higher gains than areas in the West, which boomed during the pandemic. In fact, Rhode Island saw the highest average price growth year over year.

Nevertheless, the average homeowner did continue to increase their home equity. Over the course of 2024, the median cost of a home ticked up by $19,500.

Which four states were home to the most at-risk markets?

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Florida, Georgia, Utah, and Washington state were home to the largest number of risky markets in 2024. While there were a few other states that had markets pop onto the map, their presence was short lived. Atlanta, in particular, spent the majority of 2024 on the list.