The Case-Shiller National Home Price Index, reported by S&P Dow Jones Indices Thursday, slowed to a 9.8 per cent seasonally adjusted annual growth rate in December, from 10.4 per cent in November. The Home Price Index from the Federal Housing Finance Agency (FHFA) rose at a seasonally adjusted annual rate of 5.5 per cent in December, following 7.1 per cent in November.
House price appreciation is largely driven by existing home sales and inventory, said NAHB. Existing home sales have been fluctuating over the past year, particularly with interest rate expectations. Correspondingly, house price appreciation has experienced some volatility.