An FHFA economist said the supply shortage drove prices to post a 1.6% quarterly growth
House prices across the US posted quarterly and yearly increases during the second quarter with tightening inventory continuing to drive growth.
The second quarter saw house prices rise 1.6% from the prior quarter, according to the house price index of the Federal Housing Finance Agency (FHFA). June saw the agency’s adjusted monthly index climb 0.1% from May. On a year-over-year basis, house prices increased 6.6% from the second quarter of 2016.
FHFA uses home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac to calculate the index.
"US house prices rose in most states during the second quarter," said FHFA Senior Economist William Doerner. "New home sales are climbing but, relative to the overall population, they still remain low from a historical perspective. The tight inventory is a major explanation for why house prices have been increasing every quarter over the last six years."
The index also looked at price movements for states, metropolitan areas, and census divisions.
Forty-eight states and the District of Columbia saw higher home prices during the quarter compared to the same period last year. The highest annual price increases were posted in Washington state at 12.4%, Colorado at 10.4%, Idaho at 10.3%, Florida at 9.4%, and Utah at 9.2%.
The Seattle-Bellevue-Everett, Wa., metropolitan area saw the greatest annual price increase among the 100 largest metro areas at 15.7%. The New Haven-Milford metropolitan area in Connecticut saw the weakest price growth at only 0.1%.
The Pacific census division posted the strongest growth in home prices during the quarter, with an 8.9% annual increase and a 2.6% increase from the last quarter. The Middle Atlantic division saw the weakest house price appreciation, with prices increasing only 0.8% from last quarter.
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The second quarter saw house prices rise 1.6% from the prior quarter, according to the house price index of the Federal Housing Finance Agency (FHFA). June saw the agency’s adjusted monthly index climb 0.1% from May. On a year-over-year basis, house prices increased 6.6% from the second quarter of 2016.
FHFA uses home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac to calculate the index.
"US house prices rose in most states during the second quarter," said FHFA Senior Economist William Doerner. "New home sales are climbing but, relative to the overall population, they still remain low from a historical perspective. The tight inventory is a major explanation for why house prices have been increasing every quarter over the last six years."
The index also looked at price movements for states, metropolitan areas, and census divisions.
Forty-eight states and the District of Columbia saw higher home prices during the quarter compared to the same period last year. The highest annual price increases were posted in Washington state at 12.4%, Colorado at 10.4%, Idaho at 10.3%, Florida at 9.4%, and Utah at 9.2%.
The Seattle-Bellevue-Everett, Wa., metropolitan area saw the greatest annual price increase among the 100 largest metro areas at 15.7%. The New Haven-Milford metropolitan area in Connecticut saw the weakest price growth at only 0.1%.
The Pacific census division posted the strongest growth in home prices during the quarter, with an 8.9% annual increase and a 2.6% increase from the last quarter. The Middle Atlantic division saw the weakest house price appreciation, with prices increasing only 0.8% from last quarter.
Related stories:
Indexes show annual, monthly gains in US house prices
New record for house price index
