It seems that home prices have reached an inflection point and are on the rise once again. Black Knight reported that home prices rose 0.5% in March. This followed a 0.4% rise in February. When we look at Case Shiller, they are reporting that home prices rose 0.2% in February. The FHFA reported a rise of 0.2% in January and a rise of 0.4% in February. The CoreLogic Home Price Index reported two huge increases: up 0.8% in February and up 1.6% in March. Finally, Zillow’s Home Value Index rose 0.1% in February and 0.9% in March.

All this data is quite contrarian to what has been reported and talked about in the media. Unfortunately, there is a lot of talk about housing bubbles, crashes, and predictions of 20% drops in pricing. We’re just not seeing this here. Year over year, home prices were up in 2022 and they are heading upwards in 2023 as well. There was a short period of time from July of 2022 to the end of 2022 where home prices did decline slightly, but it barely registered statistically from FHFA. When you take a look at Case Shiller it was less than a 3% decline which is not much of a decline from such a huge increase previously.

As inflation continues to decline, it will push interest rates lower which will exacerbate home price appreciation going forward.

Sources :

By: Jon Iacono
A Family

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