February 5, 2024

Resilient Housing Market

The Case Shiller Home Price Index was released last week, and it showed that home prices rose 0.2% in November and are now up 5.14% from last year. When looking at the trend of home price appreciation it is apparent that home prices have been on the rise since January 2023.

This index is continuing to set new all-time highs in home prices as of July and is on pace for around 6% appreciation for the 2023-year end. The Case Shiller Home Price Index has been setting new highs since January 2023.

Also released on the same day was the Federal Housing Finance Agency’s House Price Index or FHFA HPI. This measures home price appreciation on single-family homes with conforming loan amounts. Different from Case Shiller, it does not include cash buyers or jumbo loans which offer a different look at appreciation via just mortgaged homes. The FHFA reported that home prices rose 0.3% in November and are up 6.6% year over year.

The FHFA HPI is on pace for 7% appreciation for 2023-year end and has continued to set new record highs in home prices every month since February of 2023.

Both home appreciation reports point to very resilient home buyer demand and a very resilient housing market. This is because there is a dearth of housing inventory and buyers who are still seeing the need and value in purchasing a home.

Sources :

https://bit.ly/3f4R6fl

https://bit.ly/49gJm6h

By: Jon Iacono
A Family

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