Home Prices Continue to Turn Higher
So, the FHFA (that's the Federal Housing Finance Agency) just released something called the House Price Index. It's like a report card for how much home prices are going up. But there are some differences between this FHFA one and the Case Shiller index.
The FHFA index only looks at homes with "conforming loan amounts," which means loans that meet specific requirements. It doesn't count houses bought with cash or big loans. On the other hand, Case Shiller includes all types of home purchases.
In May, home prices went up by 0.7%, and it was the same in April too. And guess what? Compared to last year, home prices are now 2.8% higher! That means houses are getting more expensive.
Also, if we compare the current prices to the peak prices in June 2022, they're now 2.3% higher. That's a lot!
Oh, and here's something interesting. FHFA seems to be doing better than Case Shiller because it's not counting cash buyers who can get discounts. So, FHFA is showing even stronger growth.
The FHFA thinks that by the end of 2023, home prices might go up by 7% in total! That's a big increase!
So, overall, both FHFA and Case Shiller are saying that home prices are going up, but FHFA seems to be showing even stronger growth. Exciting times for the housing market!
The FHFA index only looks at homes with "conforming loan amounts," which means loans that meet specific requirements. It doesn't count houses bought with cash or big loans. On the other hand, Case Shiller includes all types of home purchases.
In May, home prices went up by 0.7%, and it was the same in April too. And guess what? Compared to last year, home prices are now 2.8% higher! That means houses are getting more expensive.
Also, if we compare the current prices to the peak prices in June 2022, they're now 2.3% higher. That's a lot!
Oh, and here's something interesting. FHFA seems to be doing better than Case Shiller because it's not counting cash buyers who can get discounts. So, FHFA is showing even stronger growth.
The FHFA thinks that by the end of 2023, home prices might go up by 7% in total! That's a big increase!
So, overall, both FHFA and Case Shiller are saying that home prices are going up, but FHFA seems to be showing even stronger growth. Exciting times for the housing market!