The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices nationwide rose 0.3% from February to March after seasonal adjustment. Home values in March were also 6.5% higher than a year earlier, unchanged from the previous report.
The Federal Housing Finance Agency’s (FHFA) House Price Index also reported a 0.1% jump in home prices from February to March, with prices 6.7% 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? March’s report “boasts another all-time high” for home prices, confirmed S&P DJI’s Head of Commodities, Brian D. Luke. “On a seasonal adjusted basis, national home prices have reached their ninth all-time high within the past year, with all 20 metropolitan markets posting positive annual gains for the fourth consecutive month, indicating widespread and sustained growth in the housing sector.”
These indexes show that homeownership remains a fantastic opportunity for families to create wealth through appreciation gains.