The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, showed home prices nationwide rose 0.2% from October to November after seasonal adjustment. This marked the tenth straight month of gains and a new record high. Home values in November were also 5.1% higher than a year earlier, with S&P DJI’s Head of Commodities, Brian D. Luke, noting that “November’s year-over-year gain saw the largest growth in U.S. home prices in 2023.”
The Federal Housing Finance Agency’s (FHFA) House Price Index also saw home prices rise 0.3% from October to November and 6.6% year-over-year, 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 are on pace to rise between 6-7% in 2023, based on the reported pace of appreciation through November. These indexes show that homeownership continues to provide opportunities for building wealth through real estate.