Housing Market Is Still a Strong & Meaningful Investment-Local Market Needs Inventory

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Housing is a Meaningful Investment

The Case Shiller Home Price Index, which is known as one of the best or most accurate gauges of appreciation, showed that home prices rose 0.2% in the month of December. Home prices have been on the rise and are now up 5.6% from last year. This appreciation index has continued to set new all-time highs in home prices as of July. Over the last five years the Case Shiller index shows that home values have risen 46%! The Federal Housing Finance Agency (FHFA) released their House Price Index, which measures home price appreciation on single-family homes with conforming loan amounts. When comparing it to the Case Shiller this appreciation report does not include cash buyers or jumbo loans. Because of this, this index has the propensity to run less “hot” since certain incentives sometimes come with the cash advantage. With that, the FHFA reported that prices rose 0.1% in December and are up 6.6% year over year. FHFA has continued to set new record highs in home prices every month since February of this year. Year over year appreciation has increased across the board with other reports such as CoreLogic showing an annual increase of 5.5% and Black Knight showing a 5.6% increase. Overall, 2023 started with a lot of negative forecasts, but ended up with year-end appreciation levels in a range between 5.5% to 6.6% depending on the report you are reading. Forecasts for 2024 are looking to be around 4-5% so far and with even 4% appreciation, the housing market is still a very meaningful investment. The local South Jersey market is still lacking inventory and prices are still going strong in most local markets for sellers.