The Case-Shiller Home Price Index, considered the industry standard for measuring home value appreciation, reported a 0.5% increase in home prices nationwide from November to December after seasonal adjustments.
On a year-over-year basis, home values in December rose 3.9%, building upon November’s 3.7% gain. The 10-city composite index posted a more robust 5.1% year-over-year increase, while the 20-city index saw a 4.5% rise, indicating stronger growth trends in major urban markets compared to the national average.
Additionally, the Federal Housing Finance Agency’s (FHFA) House Price Index showed a seasonally adjusted increase of 0.4%from November to December, with prices 4.7% higher than last year. Unlike the Case-Shiller Index, the FHFA’s measurement excludes cash buyers and jumbo loans, focusing solely on conventional mortgage financing.
What’s the bottom line?
Brian D. Luke, Head of Commodities at S&P DJI, remarked that the Case-Shiller Index “continues to highlight the upward trend of home prices nationally.” For example, buying a home for $600,000 that appreciates by 4% over a year could result in a $24,000 gain, underscoring the substantial wealth-building potential of homeownership.
