The Case-Shiller Home Price Index reported a slight 0.1% dip from December to January before seasonal adjustments. After accounting for typical seasonal patterns, prices actually rose 0.2%. Compared to a year ago, home prices are up 0.9% nationally.
The Federal Housing Finance Agency (FHFA) index tells a similar story. It showed home prices rising 0.1% month over month (seasonally adjusted) and 1.6% year over year for homes financed with conventional mortgages.
What’s the bottom line?
Home prices have now increased for six straight months, according to Case-Shiller. That pace translates to an annual growth rate of about 3.3%. Even modest appreciation can add up over time. For example, a $500,000 home gaining 3% in value would add roughly $15,000 in just one year, highlighting how homeownership can build wealth.
