In May, the Case-Shiller Home Price Index, which is the best gauge of inflation, showed home prices dipped 0.3% after seasonal adjustments, and while this may capture some headlines, the actual increase was +0.4% and much stronger before the adjustments. Prices are still rising, just more slowly. Year-over-year growth was 2.3%, down from previously reported 2.7%. Some of the top cities’ growth are as follows: New York (+7.4%), Chicago (+6.1%), and Detroit (+4.9%).
The FHFA Index, which also measures home price appreciation, but excludes cash and jumbo loans, showed a 0.2% adjusted drop in April, but again that was after seasonal adjustments of the raw data which showed a +0.4% actual gain. Annual home prices were up 2.8% in this report, but slid slightly from the 3.2% that was previously reported.
Even though these reports were slightly tamer than their last reports they are still showing year over year gains in appreciation in the housing market. As interest rates continue to rally, these reports will continue to show improvements at even more accelerated rates.
Sources :
marketwatch.com
https://www.fhfa.gov/data/hpi