The latest home appreciation reports were recently released, and they both showed home price appreciation is continuing.
The September Case Shiller Home Price Index, which is seen as the most accurate gauge of appreciation, showed that home prices rose 0.7%. Home prices are now up 3.9% year over year and have been on the rise since January. This index is showing that appreciation is setting new all-time highs in home prices and appreciation is on pace for 6% for 2023.
The Federal Housing Finance Agency (FHFA) released its own appreciation index for the month of September, which measures home price appreciation on single-family homes with conforming loan amounts, no cash purchases are included, and no jumbo loans either. The FHFA House Price Index (HPI) showed that home prices rose 0.6% month over month. Year-over-year the FHFA HPI showed that home prices were up 6.1%.
It is apparent that home appreciation is still strong and on the rise since January when looking at the top five appreciation reports in the US. According to Case Shiller, FHFA, CoreLogic, Black Knight, and Zillow, home values are setting new all-time highs, surpassing the peak from last year and more than recovering from the downturn we saw in the second half of 2022. Home prices are on pace to appreciate 6-8% in 2023 based on their pace through September.
Again, it is evident that on average across the country, homes are still appreciating. They are on track for solid year-end appreciation due to demand staying strong and tight inventory levels.
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By: Jon Iacono