Upward momentum in U.S. house prices remained strong in the second quarter, as prices rose 2.1 percent from the previous quarter, according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). This is the eighth consecutive quarterly price increase in the purchase-only, seasonally adjusted index.
“The housing market experienced one of its strongest quarters since the boom in the middle of the last decade,” said FHFA Principal Economist Andrew Leventis.
The HPI is calculated using home sales price information from mortgages sold to or guaranteed by Fannie Mae and Freddie Mac. Compared with last year, house prices rose 7.2 percent from the second quarter of 2012 to the second quarter of 2013. FHFA’s seasonally adjusted monthly index for June was up 0.7 percent from May.
FHFA’s expanded-data house price index, a metric introduced in August 2011 that adds transaction information from county recorder offices and the Federal Housing Administration to the HPI data sample, rose 2.4 percent over the latest quarter. Over the last four quarters, that index is up 7.5 percent.
The seasonally adjusted, purchase-only HPI rose 7.2 percent from the second quarter of 2012 to
the second quarter of 2013 while prices of other goods and services rose only 1.0 percent. The
inflation-adjusted price of homes rose approximately 6.2 percent over the latest year.
- The seasonally adjusted purchase-only HPI rose in 47 states and in the District of Columbia during the second quarter. Top 5 in annual appreciation: 1) Nevada 2) California 3) Arizona 4) Oregon and 5) District of Columbia.
- Of the nine census divisions, the Pacific division experienced the strongest increase in the latest quarter, posting a 4.6 percent increase and a 16.2 percent increase since last year. House prices were weakest in the East South Central division, where prices increased 0.9 percent from the prior quarter.
- As measured with purchase-only indexes for the 100 most populated metropolitan areas in the U.S., second quarter price increases were greatest in the OrlandoKissimmee-Sanford, FL Metropolitan Statistical Area (MSA) where prices increased