Craig Lazzara from Case-Shiller said, “Prices are clearly increasing at a slower rate. It’s important to bear in mind that deceleration and decline are two entirely different things and that prices are still rising at a robust clip. June’s growth rates for all three composites are at or above the 95th percentile of historical experience. For the first six months of 2022, in fact, the National Composite is up 10.6%. In the last 35 years, only four complete years have witnessed increases that large.”
The Federal Housing Finance Agency (FHFA) released their House Price Index, which measures home price appreciation on single-family homes with conforming loan amounts. It is a little different from Case-Shiller as it does not include cash buyers or jumbo loans. The FHFA reported home prices rose 0.1% in June and are up 16.2% year over year. This is a decline from 2021 which saw 18.3%. However, this is very hot on a year over year basis.
With terms like “housing recession” and “decline” floating around in the media, consumers can certainly get confused, but after analyzing these two reports it is clear that homes are still appreciating and housing itself is still strong.