Another important report that was released was the Federal Housing Finance Agency’s House Price Index. This report differs from Case Shiller because it measures home price appreciation on only single-family homes with conforming loan amounts and doesn’t take into account cash purchases. The FHFA saw home prices rise by 0.6% in March after rising 0.7% in February and 0.1% in January. This makes home prices now 0.7% higher from the peak in June of 2022!
The slight decline from the peak in home pricing that is shown in Case Shiller is coming from higher-priced homes, which is where there is less demand. Also, there are cash discounts being offered where buyers who are paying in cash are often able to negotiate a lower purchase price.
On top of Case Shiller and FHFA showing big increases, there are other sources that are also showing an acceleration in home price appreciation as well. For March, CoreLogic reported a 1.6% increase, Black Knight showed a 0.5% increase, and Zillow showed a 0.9% increase for March as well.
As you can see, there are at least five well-known sources of home price appreciation that are all showing a trend of increasing home price appreciation. While this can be challenging for home buyers, it is undeniably showing the strength and opportunity in the housing market.
By: Jon Iacono