Jeff Adams Real Estate Report Home Price Increases Inflation in US Some Areas

Home Price Increases Inflation in US Some Areas,Home prices have now increased on a quarterly basis 12 consecutive time. The Federal Housing Administration said yesterday that the 12th increase in its purchase-only seasonally adjusted HPI was a 0.81 % rise in the 2nd quarter of 2014. The seasonally adjusted monthly index for June was up 0.4 from May, its seventh consecutive monthly increase and the 23rd month it has gained out of the last 24.

Quarterly increases peaked in Q2 of 2013 at 2.29 % and yearly increases hit a high of 8.30 % in Q3. Since those mid-2013 periods all 3 measures have plummet. Quarterly appreciation dropped to 1.80 % in Q3 and 1.23 % in Q4.

There was a small uptick to 1.31 % in the first quarter of 2014 before increase slowed to 0.81 % in the most recent quarter. Yearly increases have slowed even more progressively: 7.72 % in the 4rth quarter of 2013 then 6.79 and 5.25 % in the first 2 quarters of 2014. 

The seasonally adjusted, purchase-only HPI rose in 40 USA states during the 2nd quarter of 2014, down from 42 states and the District of Columbia during the first quarter of 2014. Yearly approval was highest in Nevada, California, District of Columbia (DC), North Dakota, and Arizona. 

The Pacific division experienced the strongest increase in the 2nd quarter, posting a 1.3 % quarterly increase and a 9.8 % increase since last year. House prices were weakest in the East South middle division, where prices decreased 0.1 % from the prior quarter. 

As calculated with purchase-only indexes for the hundred most populated metropolitan areas in the U.S., 2nd quarter price increases were most in the Winston-Salem MSA where prices increased by 4.6 %. Prices were weakest in the Birmingham-Hoover, Alabama area where they fell 4.9 %. 

The expanded-data Agency house price index, a metric that adds business information from county recorder offices and the Federal Housing Administration to the HPI data sample, rose 1.3 % over the prior quarter. 

Federal Housing Administration distress-free house price indexes, which are published for 12 big metropolitan areas have recently reported lower quarterly approval than FHFA's traditional purchase-only indexes. During the last year (2013), the share of Fannie Mae and Freddie Mac mortgages finance distressed sales has fallen in all but 2 areas covered by the FHFA indexes.