FHFA: House Prices Outpacing Inflation

House prices increased 1.8 percent fromrnthe first quarter of 2012 to the second the Federal Housing Finance Agencyrn(FHFA) said today.  The Agency’s purchase-onlyrnseasonally adjusted Home Price Index (HPI) rose 3.0 percent from the secondrnquarter of 2011 to the second quarter of 2012 and its seasonally adjustedrnmonthly index for June was up 0.7 percent from May.  If annualized, the recent quarterly increasernwould be 7.22 percent.</p

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During the second quarter the HPI rosernin 43 states and in eight of the nine census divisions with only New Englandrnremaining virtually unchanged at -0.03 percent. rnNew England along with the Middle Atlantic division were the worstrnperformers on an annual basis, -0.4 percent each.  Prices increased most strongly in the Mountainrndivision which was up 4.17 percent for the quarter and 11.1 percentrnyear-over-year.</p

FHFA notes that, while the nationalrnpurchase-only HPI rose 3.0 percent from the second quarter of 2011 to the samernperiod in 2012, the prices of other goods and services rose 1.7 percent.  Therefore, the inflation adjusted price ofrnhomes rose about 1.3 percent over the year.</p

FHFA’s purchase-only andrnall-transactions HPI track average house price changes in repeat sales orrnrefinancing on the same single-family properties.  The purchase-only index is based on more thanrn6 million repeat sales transactions, the all-transactions index on 46 million.

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