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Case-Shiller, FHFA: US Home Prices Soar to Record High, Up 5.5% Annually

By:
James Hyerczyk

The S&P CoreLogic Case-Shiller and FHFA Indices report a continued rise in US housing prices.

US Housing Reports

Highlights

  • US housing market shows sustained growth
  • Detroit, San Diego lead in regional price gains
  • FHFA reports 5.5% annual house price increase

Sustained Growth in US Housing Market: S&P CoreLogic and FHFA Indices

The latest S&P CoreLogic Case-Shiller Indices and FHFA House Price Index indicate continued growth in the US housing market. The S&P CoreLogic Case-Shiller data for September 2023 shows significant growth in major metro markets, while the FHFA reports a 5.5% increase in US house prices year-over-year.

S&P CoreLogic Case-Shiller’s analysis reveals that Detroit, San Diego, and New York are leading the year-over-year gains, with the Northeast and Midwest as the strongest regions. Conversely, the FHFA highlights Vermont, Maine, and New Hampshire as top performers, with Hawaii and the District of Columbia experiencing price depreciation.

Quarterly and Monthly Insights

On a quarterly basis, the FHFA House Price Index reflects a 2.1% rise from the second quarter of 2023. Monthly insights from September show a 0.6% increase, aligning with the S&P CoreLogic Case-Shiller Index’s findings of continued upward trends in the housing market.

Market Dynamics and Economic Indicators

The robust growth in house prices is primarily attributed to a low supply of homes for sale, as per Dr. Anju Vajja of FHFA. Both indices show a consistent increase in housing prices across various US regions, despite recent increases in mortgage rates.

Future Outlook

The sustained appreciation in house prices, as indicated by both indices, points towards a stable and growing housing market. With the trend of positive annual appreciation since 2012, the market outlook remains optimistic unless affected by higher rates or significant economic events. This steady growth in the housing market reflects the resilience of the real estate sector amidst fluctuating economic conditions.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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