🏘️ Boston's Home Prices Soar to New Heights! 🌟

Home price growth persisted in December, defying economic pressures and mortgage rate fluctuations, according to the latest S&P CoreLogic Case-Shiller Index. Home prices rose 3.9% annually, outpacing November’s 3.8% increase, signaling continued price appreciation despite market slowdown concerns.

The housing market saw particularly strong home price growth in the Northeast, where Boston stood out by reaching an all-time high for the three-month period ending in December. Meanwhile, New York led among the 20 largest U.S. cities with a 7.2% annual gain, followed by Chicago (6.6%) and Boston (6.3%). Conversely, Tampa, FL, posted a 1.1% decline, the lowest return among major metro areas.

"Regional housing trends highlight variable market conditions," said Hannah Jones, Senior Economic Research Analyst at Realtor.com®. "Demand remains strong in the Midwest and Northeast, sustaining price growth, while markets in the South and West experience downward pressure."

The persistent home price growth contradicts the sluggish home sales, which hit a near 30-year low in 2024 due to high mortgage rates and affordability concerns. In December, mortgage rates for 30-year fixed loans averaged 6.72%, significantly up from 6.18% in September, per Freddie Mac.

"Although rates eased early in the month, they ended December at nearly 6.9%, likely tempering buyer enthusiasm into 2025," Jones added. Financial advice suggests that buyers should continue monitoring the market, utilizing resources such as mortgage calculators and refinance calculators to evaluate affordability in shifting market conditions.

The housing market reports indicate that cities hardest hit during the early pandemic disruptions are now rebounding, while former pandemic boomtowns like Tampa and Phoenix are slowing. "Since 2020, national home prices have grown by an average of 8.8% annually, with strong past performance in **Florida, North Carolina, Southern California, and Arizona," said Brian D. Luke, Head of Commodities, Real and Digital Assets at S&P Dow Jones Indices.

Despite ongoing home price trends, the pace of price appreciation has cooled markedly since the 18.9% peak in 2021, now trailing the long-term S&P CoreLogic Case-Shiller Index average.

Current economic indicators suggest that inflation, mortgage rates, and broader financial conditions will shape housing market performance in 2025. Buyers and sellers should stay informed with expert insights, leveraging tools such as the rent vs. buy calculator, mortgage guide, and home insurance guide, to navigate evolving home prices and affordability challenges.

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