The Case-Shiller Home Price Index, known as the top measure for home appreciation, showed that home prices went up by 0.5% in December after adjusting for seasonal trends. The unadjusted number was slightly down at -0.1%, but since winter is a slower season for real estate, the adjusted figure gives a clearer picture. This increase was stronger than experts expected.
Compared to last year, home prices rose by 3.9%, up from 3.7% in November. This growth shows the potential financial benefits of homeownership. For example, if home prices continue rising at 4% per year, someone buying a $500,000 home today could gain $20,000 in value over the next year.
The Federal Housing Finance Agency (FHFA) also tracks home prices, focusing on single-family homes with conforming loan amounts (excluding cash purchases and jumbo loans). Their report showed a 0.4% price increase in December after seasonal adjustments. Year over year, home prices are up 4.7%, slightly higher than the previous report’s 4.5%.
Bottom line: Home prices are steadily increasing at around 4% per year, making real estate a strong investment and with mortgage rates moving closer to 4-month lows things are certainly heating up!
Sources:
https://bit.ly/3gPEafo
https://www.fhfa.gov/
