The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices nationwide rose 0.4% from December to January after seasonal adjustment. Home values in January were also 6% higher than a year earlier, with S&P DJI’s Head of Commodities, Brian D. Luke, explaining that this was the “fastest annual rate since 2022.” He added that all 20 cities in their composite index saw annual price increases for the second straight month.
The Federal Housing Finance Agency’s (FHFA) House Price Index did report a slight 0.1% decline in home values from December to January, but on an annual basis prices were 6.3% 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? Last year was a strong one for appreciation, and the first reports for 2024 show that this trend continues. Home values are expected to remain supported this year, as buyer demand still outpaces tight supply. These indexes show that homeownership continues to provide opportunities for building wealth through real estate.