U.S. Home Prices Rise 4.5% Over the Prior Year

CommunityHuman InterestPress Release

The Federal Housing Finance Agency published the 2024 Q4 Housing Price Index report, and national data show home prices rose 4.5 percent between the fourth quarter of 2023 and the fourth quarter of 2024. House prices were up 1.4 percent compared to the third quarter of 2024. FHFA’s seasonally adjusted monthly index for December was up 0.4 percent from November. 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 39.04% and 43.67%, with all of our regional Metropolitan Statistical Areas experiencing positive gains. 
In the past year, home prices in our markets have increased: 3.04% in Cedar Rapids and 4.87% in the Quad Cities. This compares to other cities: Des Moines, 4.10%, and Chicago, 6.77%. Of course, there is variation based on price range and location of properties, with more affordable properties appreciating more and expensive properties appreciating less. 
 

Metropolitan Statistical Area (MSA) Percent Change in House Prices
Q4 2024 1 Year 5 Years
Cedar Rapids, IA -0.20% 3.04% 39.04%
Davenport-Moline-Rock Island, IA-IL -0.86% 4.87% 39.11%
Des Moines-West Des Moines, IA -0.70% 4.10% 43.67%
Waterloo-Cedar Falls, IA -0.18% 4.92% 40.74%
Regional Average -0.49% 4.23% 40.64%
United States 1.43% 4.51% 57.13%
 
 
Information courtesy of the Federal Housing Finance Agency (FHFA) for the fourth quarter of 2024. FHFA stats always run one-quarter behind. Their full report is available at www.fhfa.gov.  
 
“U.S. house prices grew at a slightly higher rate in the fourth quarter after three straight previous quarters of weaker appreciation,” said Dr. Anju Vajja, Deputy Director for FHFA’s Division of Research and Statistics. “The price growth accelerated during the quarter as the inventory of homes for sale tightened even further.”
 
“Home price appreciation across our region remained positive on an annual basis in 2024, even though values softened by about 0.5% in the fourth quarter. The reported year-over-year gains, ranging from just over 3% to nearly 5% across our region, reflect the ongoing impact of strong demand and limited supply. While short-term adjustments are normal, the long-term trend remains healthy, with nearly 40% appreciation over the past five years. This sustained growth continues to reinforce the value of homeownership as a sound long-term investment. With interest rates easing and affordability improving, we’re optimistic we’ll see continued stability and a very active spring market,” said Chris Beason, President of Ruhl&Ruhl Realtors.
 
About Ruhl&Ruhl Realtors
A family-owned company since 1862, Ruhl&Ruhl Realtors has grown to 277 sales Associates, 59 employees, and 10 offices, selling more than 4,200 homes in eastern Iowa, northwest Illinois, and southwest Wisconsin. The company has residential sales offices in Bettendorf, Burlington, Cedar Rapids, Clinton, Davenport, DeWitt, Dubuque, Iowa City, and Muscatine, Iowa; and in Moline, Illinois. For more information on Ruhl&Ruhl Realtors, visit their website at www.RuhlHomes.com.
 

U.S. Home Prices Rise 4.5% Over the Prior Year