The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices nationwide rose 0.6% from September to October after seasonal adjustment, marking the ninth consecutive month of gains. Prices were also 4.8% higher than in October of last year, which is the fastest annual rate of the year. S&P DJI’s Head of Commodities, Brian D. Luke, noted that the report “reflects a rising tide across nearly all markets.”
The Federal Housing Finance Agency’s (FHFA) House Price Index also saw home prices rise 0.3% in October, with their index setting new record highs in home prices every month since February.
Note that FHFA’s report measures home price appreciation on single-family homes with conforming loan amounts, which means it most likely represents lower-priced homes. FHFA also 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? Home prices continue to set new highs according to Case-Shiller, FHFA, CoreLogic and Black Knight, more than recovering from the downturn we saw in the second half of 2022. Prices are now on pace to appreciate around 7% this year, based on the reported pace of appreciation through October. These indexes show that now remains a great opportunity for building wealth through homeownership and appreciation gains.