The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices nationwide rose 0.2% from November to December after seasonal adjustment. Home values in December were also 5.5% higher than a year earlier, with S&P DJI’s Head of Commodities, Brian D. Luke, noting that the index “continued its streak of seven consecutive record highs in 2023” and “ten of 20 markets beat prior records.”
The Federal Housing Finance Agency’s (FHFA) House Price Index also saw home prices rise 0.1% from November to December and 6.6% year-over-year, with their index setting new record highs in home prices every month since February. Note that FHFA’s report measures home price appreciation on single-family homes with conforming loan amounts, which means it most likely represents lower-priced homes. FHFA also does not include cash buyers or jumbo loans, and these factors account for some of the differences in the two reports.
What’s the bottom line? Last year was a strong one for appreciation, with the final numbers for 2023 showing that home prices were up 5.5% per Case-Shiller and 6.6% per FHFA. Previous reporting from Black Knight (5.6%) and CoreLogic (5.5%) also reflected similar home price growth for last year. These indexes show that homeownership continues to provide opportunities for building wealth through real estate.