The S&P CoreLogic Case-Shiller Home Price Index (HPI) claims to be a leading measure of U.S. home prices by using a more precise calculation than other home price measures of home price changes over time. What makes the S&P/Case-Shiller HPI stand out is its repeat sales method and creation of sales pairs – i.e. “When a home is resold, months or years later, the new sale price is matched to its first sale price.” It also weights the sales pairs to control for quality change in the measured homes and uses a three-month moving average.
The latest S&P CoreLogic Case-Shiller Home Price Index for March saw a year-over-year (YoY) increase of 0.7%, down from a 2.1% YoY increase in February. On a month-over-month basis, the national index was up 1.3% from February (also NSA). After adjusting for seasonality, the national index was up 0.4% from February while the 10- and 20-City Composites increased 0.6% and 0.5%, respectively.
Fifteen of twenty major metro markets reported higher prices in March (after seasonal adjustment), with regions in the West leading the declines and the South leading increases.
Despite these increases, it’s important to note that mortgage rates abated in March and there were similar increases in other house price indexes in March (FHFA House Price Index and Median Single-Family Home Prices from the NAR).
Here’s an excerpt from the press release:
“Two months of increasing prices do not a definitive recovery make, but March’s results suggest that the decline in home prices that began in June 2022 may have come to an end. That said, the challenges posed by current mortgage rates and the continuing possibility of economic weakness are likely to remain a headwind for housing prices for at least the next several months.”