Our focus this week is the S&P/Case-Shiller Home Price Index. The index tracks property values in 20 US metropolitan regions with a two-month lag. Many closely watch the index due to its robust methodology that weighs transactions from repeat sales of the same home across time.
In December, home values increased by 4.6% year-over-year. As home values continue to rise, the National Association of Realtors estimates that pending sales rose sharply in January by 8.1% from the previous month. Increased sales activity puts additional pressure on already tight inventories within many markets.
Recent home price growth has slowed from record-breaking levels from 2020 to 2022. However, while slowing, home price growth remains near historical median levels. The S&P/Case-Shiller Home Price Index measured median annual home value growth at 4.5% year-over-year for the past 15 years and 4.9% year-over-year for the past 30 years.
Leading housing market forecasters have predicted growth and declines in home values during 2023.
Each forecaster’s method weighs underlying housing market characteristics and data points differently. Future Plotify Insights will explore how forecasters employ different methodologies to predict changes to home values. Stay tuned for more updates.
Plotify is not responsible for external data or links within this communication, and has no input in underlying data collection or perspectives of third parties. Any educational content provided is for informational purposes only and is not investment advice.
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