As predicted by low inventory, house price growth is accelerating. House prices were up 5.7% through August according to the Case Shiller index.
Given inventory continues to decline, I expect house prices to increase even faster the next few months.
House Price Inflation
My thought has been for months that housing would be fine. In fact, I expected that price rises would accelerate given the lack of inventory for sale and low rates. Whelp, here we go. Here’s the FHFA price index updated through July.
Prices are up 6.2% year over year and accelerating. Inventory is low everywhere still and I expect this to continue.