Angel Oak Capital Advisors, LLC’s Post

Transcript

Yeah, so, home prices hung in there quite well, rose north of inflation. You look at the Case-Shiller Index, it was up around 4%, just sub-4%. You look at the FHA Index, there's about 4.5%. So both of those figures coming in north of inflation, which is what we expected. I think what's important to note is we have been anticipating a slowdown in appreciation, right? So that second derivative. Home prices still rising across the United States, but at a slower pace than they were in 2023. You look at 2023's figures, it was around 6 to 7% in home price appreciation, so we have been slowing. Our call for 2025 was about 1 to 4%. So a decent kind of range there, but it does illustrate that there is a little bit of uncertainty there. We still think home prices will be supportive here, but with inflation being not in deflation-- we're still positive inflation in the U.S. You're running that kind of 2 to 3% number. Home prices should be around that level given where home valuations are heading into this year.