Case-Shiller Report Shows Strong Monthly Gain

Home-price appreciation rose 0.8 percent in December as Case-Shiller's 20-city index extends its run of strong monthly gains. But the year-on-year rate, however, slowed to plus 5.7 percent and a bit further away from the 6.0 percent line where, for instance, the FHFA index has been trending. Household wealth is increasingly dependent, not on wage gains, but on home-price appreciation, and some homeowners are looking for sharp appreciation this year, up to 10 percent. Watch for FHFA home prices on Thursday's calendar.

Recent History Of This Indicator:
Homes on the market are scarce which has been helping home prices where year-on-year appreciation is approaching 6 percent. The Case-Shiller adjusted 20-city index is expected to show a year-on-year rate of 5.9 percent in the December report for a 1 tenth gain with the month-on-month adjusted rate at a very strong plus 0.8 percent. Home prices aren't quite booming but they are well ahead of wages and a key source of increasing household wealth. Note that FHFA house price data will be released later in the week on Thursday morning.