The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices nationwide rose 0.3% from April to May after seasonal adjustment, breaking the previous month’s all-time high. Home values in May were also 5.9% higher than a year earlier, following a 6.4% gain in April.
The Federal Housing Finance Agency’s (FHFA) House Price Index also reported that home prices were unchanged from April to May, with prices 5.7% 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? National home values continue to set new all-time highs, and housing still proves to be one of the best investments and vehicles for wealth creation. S&P DJI’s Head of Commodities, Brian D. Luke, confirmed, “The waiting game for the possibility of favorable changes in lending rates continues to be costly for potential buyers as home prices march forward.” Luke added that Case-Shiller’s home price index “has appreciated 4.1% year-to-date, the fastest start in two years.”