National Month-over-Month (MoM) HPA in April was up 0.7%, indicating the continuing ability of the seller's market to push back on sharply higher rates

WASHINGTON, May 24, 2023 /PRNewswire/ -- Nationally, prices have now returned to the peak level reached in June 2022 (not seasonally adjusted), according to data from the American Enterprise Institute's (AEI) Housing Center. The national Month-over-Month (MoM) HPA in April was up 0.7%, continuing the upward trend that began in Jan. 2023, after MoM HPA had declined from Jul. to Dec. 2022. Based on Optimal Blue rate lock data, the HPA peak reached in June 2022 will be exceeded by May 2023. Home prices have increased in all of the 60 metros since their respective recent troughs in either Dec. 2022 or Jan. 2023 (see #1 in graphic).

April's Year-over-Year constant-quality HPA was 1.4%, down from 2.6% a month ago, and a YoY Peak of 18.3% in March 2022.

YoY HPA varied significantly among the 60 largest metros. It ranged from -11.8% and -10.2% in San Francisco and San Jose to 14.2% and 8.8% in Indianapolis and Kansas City (see #2 in graphic). 

Historically, low price tier HPA has outpaced HPAs for upper price tiers. This trend continued in April, with the high price tier flat on a YoY basis, while the low price tier increased 6.0% YoY.

April months' supply dropped from its recent uptick, signaling the continuation of the strong seller's market. Months' supply stood at 2.4 months in April 2023, dropping from 3.4 months last month and 3.6 months in April 2019 (pre-pandemic). (See #3 in graphic). The months' supply for the low price tier came in at 1.5 months in April 2023, helping to explain the 6% YoY price growth for this tier.

The AEI Housing Center provides the most advanced and timely information on home prices available. Measures of home price appreciation like the Case Shiller index have months of lag. The Housing Center has published data for April 2023 and is able to accurately project May and June with Optimal Blue rate lock data as well.

National Home Price Appreciation (HPA) Index – April 2023

Media Contact Details:

Sissi Li
American Enterprise Institute Housing Center
https://www.aei.org/centers/housing-center/
[email protected]
203-419-5240

SOURCE AMERICAN ENTERPRISE INSTITUTE FOR PUBLIC POLICY RESEARCH