Part 2: Current State of the Housing Market; Overview for mid-April

by Calculated Risk on 5/12/2023 09:24:00 AM

Today, in the Calculated Risk Real Estate Newsletter: Part 2: Current State of the Housing Market; Overview for mid-April

A brief excerpt:

Yesterday, in Part 1: Current State of the Housing Market; Overview for mid-April I reviewed home inventory and sales, and mortgage delinquencies.
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Other measures of house prices indicated year-over-year slowing or further declines in March. The NAR reported median prices were down 0.9% YoY in March. Black Knight reported prices were up 1.0% YoY in March, and Freddie Mac reported house prices were up 1.0% YoY in March. Here is a comparison of year-over-year change in the FMHPI, median house prices from the NAR, and the Case-Shiller National index.

The FMHPI and the NAR median prices appear to be leading indicators for Case-Shiller. The median price was down YoY in March, and based on the recent trend, the FMHPI will be negative year-over-year in April or May – and Case-Shiller will follow within a few months.

In real terms, the Case-Shiller National index is down 4.6% from the peak, seasonally adjusted. Historically it takes a number of years for real prices to return to the previous peak, see House Prices: 7 Years in Purgatory.