The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices nationwide rose 0.3% from September to October after seasonal adjustment, breaking the previous month’s all-time high. Home values in October were also 3.6% higher than a year earlier, following a 3.9% gain in September.
Case-Shiller’s 10-city (+4.8% YoY) and 20-city (+4.2% YoY) indices reported even higher growth than the nationwide figures, showing that big cities are outperforming the rest of the nation.
The Federal Housing Finance Agency’s (FHFA) House Price Index also showed that home prices rose a seasonally adjusted 0.4%from September to October, and they were 4.5% higher when compared to the same time last year. FHFA’s Index differs from Case-Shiller’s because it does not include cash buyers or jumbo loans, only loans financed with conforming mortgages.
What’s the bottom line?
Home prices are continuing to appreciate and though the pace has been moderating, homeownership continues to provide a significant wealth creation opportunity.
In fact, S&P DJI’s Head of Commodities, Brian D. Luke, noted that Case-Shiller’s National Index “hit its seventeenth consecutive all-time high” while Dr. Anju Vajja, Deputy Director at FHFA, explained that “home prices continued to grow at a steady rate.”