The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices nationwide rose 0.4% from January to February after seasonal adjustment. Home values in February were also 6.4% higher than a year earlier, which is the fastest annual rate since November 2022. The Federal Housing Finance Agency’s (FHFA) House Price Index also reported a 1.2% jump in home prices from January to February, with prices 7% higher than the previous year. Note that FHFA 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? S&P DJI’s Head of Commodities, Brian D. Luke, confirmed that national home prices are “at or near all-time highs” with all 20 cities in their composite index once again posting annual price increases. Home values are expected to remain supported this year, as buyer demand still outpaces tight supply. These indexes show that homeownership remains a fantastic opportunity for families to create wealth through appreciation gains.