The closely watched Case-Shiller Home Price Index, the industry standard for measuring home value appreciation, reported a 0.6% increase in home prices across the country from December to January after seasonal adjustments.
On an annual basis, home values rose 4.1% in January, building upon the 4% gain seen in December. The 10-city composite index posted a more robust 5.3% year-over-year increase, while the 20-city index saw a 4.7% rise, indicating stronger growth trends in major urban markets compared to the national average.
Separately, the Federal Housing Finance Agency’s (FHFA) House Price Index showed a seasonally adjusted 0.2% increase from December to January, with prices 4.8% higher than the prior year. Unlike Case-Shiller, the FHFA’s measurement excludes cash buyers and jumbo loans, focusing solely on conventional mortgage financing.
What’s the bottom line?
Homeownership remains a solid wealth-building opportunity. For example, a $600,000 home that appreciates 4% in a year would see a $24,000 gain, reflecting a robust investment return.