The Case-Shiller Home Price Index, which is considered the “gold standard” for appreciation, accelerated to a 15-year high in January, up 11.2% year over year on the national reading. This is an increase from the December reading at 10.44%. The 20-city index rose from 10.2% to 11.1% year over year, with almost all of the cities showing strong gains.
Phoenix, Seattle and San Diego reported the highest annual gains among 20 cities. Phoenix prices rose 15.8% followed by Seattle with a 14.3% increase and San Diego with a 14.2% increase.
The FHFA (Federal Housing Finance Agency) released their House Price Index, which measures home price appreciation on single-family homes with conforming loan amounts. While you can have million dollar-homes with a conforming loan amount, the report most likely is representing lower priced homes, where supply is tightest, and demand is strongest. It should be no surprise that it is even stronger than the Case Shiller Report – Home prices rose 1% in January and are up 12% year over year, which is even stronger than the 11.5% reading previously.
As we continue into Spring, we can see that the housing market is not slowing down. The demand continues to increase as well as the home value.