The last House Price Index or HPI has been released from the Federal Housing Finance Agency and the numbers continue to show improvement in the country’s housing market. Here is what we found in the report.
U.S. house prices rose 1.3 percent in the first quarter of 2015 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). This marks is the 5th consecutive quarterly price increase in the purchase-only, seasonally adjusted index. FHFA’s seasonally adjusted monthly index for March was up 0.3 percent from February. The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.(FHFA 2015)
“The first quarter saw strong and widespread home price growth throughout most of the country,” said FHFA Principal Economist Andrew Leventis. “Home prices are now, on average, roughly 20 percent above where they were three years ago. This run-up has been historically exceptional and is particularly notable in light of the limited household income growth and modest rate of overall inflation observed during that same time period.”(FHFA 2015)
Other “key” things that were highlighted in the report:
Between the first quarter of 2014 and the first quarter of 2015, home prices rose in 48 states. The top five states in annual appreciation: 1) Colorado – 11.2 percent 2) Nevada – 10.1 percent 3) Florida – 8.7 percent 4) Washington – 7.6 percent 5) California – 7.5 percent.(FHFA 2015)
U.S. House Prices Rise 1.3 Percent in First Quarter. FHFA. May 26, 2015. Washington D.C.