The Case Shiller Home Price Index, a trusted measure for home value changes, showed that prices went up by 0.3% in April, hitting a new record high! This number is adjusted for the usual seasonal trends, which means it considers the typical rise in prices during this time of year. Without these adjustments, prices increased by 1.2% in April alone.
The FHFA (Federal Housing Finance Agency) tracks home prices for single-family homes with conforming loan amounts. Unlike Case Shiller, it doesn’t count cash purchases or loans categorized as jumbo loans. According to the FHFA, home prices went up by 0.2% in April and have risen by 6.3% over the past year, down slightly from the previous report’s year-over-year 6.77% increase, but it is still increasing!
Compared to last year, home prices have risen by 6.3% across both reports, which shows that buying a home last year proved to be a great investment. With forecasts coming in at around 4-5% for the next twelve months, buying a home is still a great investment.
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By: Jon Iacono