The widely watched Case-Shiller Home Price Index, often called the “gold standard” for tracking home values, shows that nationwide home prices rose 0.6% from March to April before seasonal adjustments, though they declined slightly (-0.4%) after adjustments. This difference occurs because prices typically increase during spring, so seasonal adjustments moderate these expected gains.
Looking at the bigger picture, national home values increased 2.7% compared to a year ago. This is a bit slower than the 3.4% annual growth seen in March. Major urban markets continued to out perform the national average, with the 10-city composite index rising 4.1% and the 20-city index up 3.4% year-over-year.
The FHFA House Price Index showed similar trends: prices increased 0.6% before seasonal adjustments but decreased 0.4% after adjustments, with a 3% year-over-year gain. Note that FHFA only tracks homes purchased with conventional mortgages, excluding cash purchases and jumbo loans.
What’s the bottom line?
Case-Shiller noted that “housing supply remains severely constrained.” Many existing homeowners are holding onto their low, pandemic-era mortgage rates under 4%, while new construction is not keeping pace with demand. This shortage of supply continues to support home prices and has helped prevent the declines some analysts had anticipated.