Sarasota Real Estate Market News

Government: Home prices up 1.8% in three months

WASHINGTON – Aug. 24, 2012 – U.S. house prices rose 1.8 percent from the first quarter of 2012 to the second quarter, according to the Federal Housing Finance Agency’s (FHFA) seasonally adjusted purchase-only house price index (HPI).

It’s the biggest quarter-to-quarter increase since 2005. The HPI is considered reliable because it looks at same-home sales over time, using price information from Fannie Mae and Freddie Mac.

Seasonally adjusted house prices rose 3 percent year-over-year, from the second quarter of 2011 to the second quarter of 2012. FHFA’s seasonally adjusted monthly index for June was up 0.7 percent from May.

“Although some housing markets are still facing significant challenges, house prices were quite strong in most areas in the second quarter,” says FHFA Principal Economist Andrew Leventis. “The strong appreciation may partially reflect fewer homes sold in distress, but declining mortgage rates and a modest supply of homes available for sale likely account for most of the price increase.”

FHFA’s expanded-data house price index – a measure that adds transaction information from county recorder offices and the Federal Housing Administration (FHA) to HPI data – rose 2 percent over the latest quarter. Over the latest four quarters, the index is up 2.4 percent.

Findings

• The seasonally adjusted purchase-only HPI rose in the second quarter in 43 states.

• Of the nine census divisions, the Mountain division experienced the strongest prices in the latest quarter, posting a 4.2 percent price increase. Prices were weakest in the New England division, where prices were flat over the quarter.

• As measured with purchase-only indexes for the 25 most populated Metropolitan Statistical Areas (MSAs) in the U.S., second-quarter price increases were greatest in the Miami-Miami Beach-Kendall Metropolitan Statistical Area Division (MSAD.) That area saw prices increase by 8.3 percent between the first and second quarters.

• Prices were weakest in New York-White Plains-Wayne, NY-NJ MSAD, where prices fell 1.5 percent over that period.

FHFA’s purchase-only and all-transactions HPI track average house price changes in repeat sales or refinancings on the same single-family properties. The purchase-only index is based on more than 6 million repeat sales transactions, while the all-transactions index includes more than 46 million repeat transactions. Both indexes are based on data obtained from Fannie Mae and Freddie Mac for mortgages originated over the past 37 years.

© 2012 Florida Realtors®

October 23, 2012 - Posted by | News related to the Market

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