Economic Perspectives

Home Price Gains Depend on Location and Inflation;
Too Early to Call a Top in Home Values

Authored by Brian Jones, FHLBNY Financial Economist

Highlights

June 2018

• Home Prices Have Risen Since 2012, But Amount of Appreciation Has Varied Widely
• In Real Terms, Home Values Have Moved Higher, But Remain Below Pre-Crisis Peaks
• Divergences in Home-Price Performance Have Been Large Across the FHLBNY District
• Real Home Values Continue to Improve Across the FHLBNY District
• Demand/Supply Dynamics Suggest It Would Be Premature to Call a Top in Home Prices

Buoyed by solid economic conditions and limited supplies of available dwellings, home-selling prices have risen steadily since their post-financial-crisis troughs of 2012. The amount of appreciation has varied widely across the country and the Federal Home Loan Bank of New York (FHLBNY) district in both nominal and real terms, however…

Disclaimer. The Federal Home Loan Bank of New York (“FHLBNY”) is providing this report for informational purposes only. This report should not be construed as an opinion, recommendation, or solicitation regarding the use of any financial strategy and/or the purchase or sale of any financial instrument. The recipients of this report are advised to conduct their own independent due diligence and consult with financial advisors, accountants, and attorneys before making any investment, credit, or any other financial decisions. FHLBNY does not warrant the completeness or accuracy of this report. The past performance of any FHLBNY service or product should not be viewed as a guarantee of future results. The information contained in this report, as well as the services and products provided by the FHLBNY, may change at any time without notice.