How the Case-Shiller index can help you decide if now’s the time to buy.
One of the most common questions we’ve been getting lately is if now is a good time to buy a home. While we don’t have a crystal ball to show us what will happen to the market in the future, we have some historical data that can help you decide.
The Case-Shiller home price index measures the change in the value of the U.S. residential housing market by tracking the purchase prices of single-family homes. The index is compiled and published monthly and can be filtered by city, area, or a composite group of multiple cities.
“As the Case-Shiller index has shown, time is your friend when it comes to buying real estate.”
Looking at the chart at 0:50 in the video above, you can see the fluctuations in home prices based on the index baseline of 100. In January 2022, the index for San Francisco never dropped below the original baseline, though some areas did.
The Case-Shiller index also tracks year-over-year changes in price. In 2021, the average change in price for the nation was 18.8%, which matches the average for San Francisco specifically. Some communities like Phoenix rose by 32.5%.
So is this a good time to buy a home? Absolutely! If you’re thinking of buying your first home or an investment property, think about how the value of that property will change over time. As the Case-Shiller index has shown, time is your friend when it comes to buying real estate.
If you have any questions or want to get started on your next home purchase, don’t hesitate to reach out by phone or email. We’d love to help you.