Yesterday, we learned that the Case-Shiller Housing Index is up 12.1% through June. In response, Robert Shiller said “housing is a market with momentum” and he believes that the momentum is up. The numbers speak to this. See the first CNBC video below for his full commentary. Let’s remember that the Case-Shiller Index is data from two months ago and is based on a trailing three-month aggregate. That means that Case-Shiller is about the housing market of April-June more than it is about the current housing market.
Diana Olick gets to some of this in the second video below because rising interest rates are having a chilling effect on the U.S. housing market. So we should expect the house price inflation numbers to decelerate somewhat.