Los Angeles-Long Beach-Glendale Home Prices Up 4.3% Year Over Year in April, According to First American Data & Analytics Monthly Home Price Index Report

Rhea-AI Summary

First American Data & Analytics released its April 2024 Home Price Index (HPI) report. The Los Angeles-Long Beach-Glendale area saw a 4.3% year-over-year increase in home prices. Nationally, the HPI rose by 6.1% from April 2023 to April 2024. The report segments prices into three tiers: starter, mid-tier, and luxury. In Los Angeles-Long Beach-Glendale, starter homes saw a 4.6% increase, mid-tier homes rose by 6.5%, and luxury homes by 4.0%. Chief Economist Mark Fleming noted that higher mortgage rates are cooling price appreciation, with the month-over-month growth rate peaking in February 2024 at 1.3% and then slowing. This trend is expected to continue in the coming months.

Positive

• Los Angeles-Long Beach-Glendale home prices increased by 4.3% year-over-year.
• National HPI rose 6.1% from April 2023 to April 2024.
• Mid-tier homes in Los Angeles-Long Beach-Glendale saw a 6.5% increase.
• Starter homes nationally continue to outperform other price tiers.
• Pittsburgh, Miami, and St. Louis reported double-digit annualized price increases in starter-tier homes.

Negative

• Affordability has weakened due to higher mortgage rates.
• Price appreciation is cooling, with month-over-month growth peaking in February 2024 at 1.3%.

‘Higher-for-Longer’ Cools National House Price Appreciation

—Expect year-over-year price appreciation to follow this cooling trend in the months to come, says Chief Economist Mark Fleming—

SANTA ANA, Calif.--(BUSINESS WIRE)-- First American Data & Analytics, a leading national provider of property-centric information, risk management and valuation solutions and a division of First American Financial Corporation (NYSE: FAF), today released its April 2024 Home Price Index (HPI) report. The report tracks home price changes less than four weeks behind real time at the national, state and metropolitan (Core-Based Statistical Area) levels and includes metropolitan price tiers that segment sale transactions into starter, mid and luxury tiers. The full report can be found here.

April¹ 2024 Non-Seasonally Adjusted (NSA) HPI

Los Angeles-Long Beach-Glendale Market
Metric	Change in HPI
March-April 2024 (month over month)	0.0 percent
April 2023-April 2024 (year over year)	+4.3 percent
National HPI
Metric	Change in HPI
March-April 2024 (month over month)	+0.5 percent
April 2023-April 2024 (year over year)	+6.1 percent

Chief Economist National Home Price Index Analysis:

“After years of historically low levels of homes for sale, the pace of existing-home listings has modestly increased, bringing much-needed supply to the housing market. However, just as inventory levels have increased, affordability has weakened as mortgage rates have drifted higher in response to the Fed’s decision to keep the federal funds rate ‘higher for longer,’ reducing demand,” said Mark Fleming, chief economist at First American. “More supply amid a pullback in demand means price appreciation is cooling. The month-over-month growth rate peaked in February at 1.3 percent, but has since cooled significantly. This supply-demand dynamic is likely to persist, so expect year-over-year price appreciation to follow this cooling trend in the months to come.”

Year-Over-Year Price-Tier Data for the Los Angeles-Long-Beach-Glendale Metro Area: April 2023 to April 2024

The First American Data & Analytics HPI segments home price changes at the metropolitan level into three price tiers based on local market sales data: starter tier, which represents home sales prices at the bottom third of the market price distribution; mid-tier, which represents home sales prices in the middle third of the market price distribution; and the luxury tier, which represents home sales prices in the top third of the market price distribution.

CBSA	Starter	Mid-Tier	Luxury
Los Angeles-Long Beach-Glendale	4.6%	6.5%	4.0%

“Nationally, price appreciation for starter homes continues to outperform other price tiers. Given starter homes are the least supplied and the most demanded segment of the market, it’s no surprise that, even in a ‘higher-for-longer’ rate environment, there are markets with double-digit annualized price appreciation," said Fleming. “Starter-tier prices are increasing year over year by more than 10 percent in St. Louis, Miami and Pittsburgh."

April 2024 First American Data & Analytics Price Tier HPI Highlights

Core-Based Statistical Areas (CBSAs) Ranked by Greatest Year-Over-Year Increases in Starter Tier HPI
CBSA	Change in Starter Tier HPI	Change in Mid-Tier HPI	Change in Luxury Tier HPI
Pittsburgh	+12.1 percent	+6.1 percent	+4.1 percent
Miami	+11.6 percent	+9.7 percent	+8.9 percent
St. Louis	+10.8 percent	+4.1 percent	+3.5 percent
New York	+9.9 percent	+7.4 percent	+1.1 percent
Warren, Mich.	+9.6 percent	+5.6 percent	+7.9 percent

Additional April 2024 First American Data & Analytics HPI Highlights

Core-Based Statistical Areas (CBSAs) with Greatest Year-Over-Year Increases in HPI
CBSA	Change in HPI
Anaheim, Calif.	+10.2 percent
Miami	+9.5 percent
San Diego	+8.0 percent
Warren, Mich.	+7.6 percent
Pittsburgh	+7.6 percent
There were no CBSAs with a Year-Over-Year Decrease in HPI

HPI data for all 50 states and the largest 30 CBSAs by population is available here.

Next Release

The next release of the First American Data & Analytics House Price Index will take place the week of June 17, 2024.

First American Data & Analytics HPI Methodology

The First American Data & Analytics HPI report measures single-family home prices, including distressed sales, with indices updated monthly beginning in 1980 through the month of the current report. HPI data is provided at the national, state and CBSA levels and includes preliminary index estimates for the month prior to the report (i.e. the preliminary result of July transactions is reported in August). The most recent index results are subject to revision as data from more transactions become available.

The HPI uses a repeat-sales methodology, which measures prices changes for the same property over time using more than 46 million paired transactions to generate the indices. In non-disclosure states, the HPI utilizes a combination of public sales records, MLS sold and active listings, and appraisal data to estimate house prices. This comprehensive approach is particularly effective in areas where there is limited availability of accurate sale prices, such as non-disclosure states. Property type, price and location data are used to create more refined market segment indices. Real Estate-Owned transactions are not included.

Disclaimer

Opinions, estimates, forecasts and other views contained in this page are those of First American’s Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First American’s business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2024 by First American. Information from this page may be used with proper attribution.

About First American Data & Analytics

First American Data & Analytics, a division of First American Financial Corporation, is a national provider of property-centric information, risk management and valuation solutions. First American maintains and curates the industry’s largest property and ownership dataset that includes more than 8 billion document images. Its major platforms and products include: DataTree^®, FraudGuard^®, RegsData^®, First American TaxSource™ and ACI^®. Find out more about how First American Data & Analytics powers the real estate, mortgage and title settlement services industries with advanced decisioning solutions at www.FirstAmDNA.com.

About First American

First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement and risk solutions for real estate transactions. With its combination of financial strength and stability built over more than 130 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $6.0 billion in 2023, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2024, First American was named one of the 100 Best Companies to Work For by Great Place to Work^® and Fortune Magazine for the ninth consecutive year. The company was named one of the 100 Best Workplaces for Innovators by Fast Company in 2023. More information about the company can be found at www.firstam.com.

¹ The most recent index results are subject to revision as data from more transactions become available.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240521660231/en/

Media Contact:

Marcus Ginnaty

Corporate Communications

First American Financial Corporation

(714) 250-3298

Investor Contact:

Craig Barberio

Investor Relations

First American Financial Corporation

(714) 250-5214

Source: First American Data & Analytics

FAQ

What was the year-over-year home price change in Los Angeles-Long Beach-Glendale in April 2024?

The year-over-year home price change in Los Angeles-Long Beach-Glendale in April 2024 was 4.3%.

How much did the national Home Price Index increase from April 2023 to April 2024?

The national Home Price Index increased by 6.1% from April 2023 to April 2024.

Which tier saw the highest home price increase in Los Angeles-Long Beach-Glendale?

Mid-tier homes saw the highest price increase in Los Angeles-Long Beach-Glendale at 6.5%.

What is the impact of higher mortgage rates on home price appreciation?

Higher mortgage rates are cooling home price appreciation by reducing demand.

Which markets reported double-digit annualized price increases in starter-tier homes?

Pittsburgh, Miami, and St. Louis reported double-digit annualized price increases in starter-tier homes.