U.S. Home Prices Show Strong Momentum

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U.S. home prices increased 1.9 percent in the first quarter of 2013 from the previous quarter, demonstrating strong momentum, according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). 
 
The increase marks the seventh consecutive quarterly increase in the purchase-only, seasonally adjusted index and reflects other reports of record price increases. 
 
"The housing market has stabilized in many areas and homebuilding activity has strengthened in recent quarters," said FHFA principal economist Andrew Leventis. "That said, labor market weakness and still-elevated foreclosure pipelines remain hindrances to a more robust recovery."
 
Based on sales price information from mortgages sold to or guaranteed by Fannie Mae and Freddie Mac, house prices increased 6.7 percent compared to the same quarter in 2012.
 
The new quarter report includes coverage for 75 metropolitan areas, an increase from 25 areas in previous quarters, the FHFA notes.
 
Significant Findings from the report:
 

• The seasonally adjusted purchase-only HPI rose in 41 states and the District of Columbia during the first quarter.

• Of the nine census divisions, the Pacific division experienced the strongest increase in the latest quarter, posting a 4.4 percent price increase.

• House prices were weakest in the Middle Atlantic division, where prices increased 0.3 percent from the prior quarter.

• As measured with purchase-only indexes for the 75 most populated metropolitan areas in the U.S., first quarter price increases were greatest in the Jacksonville, FL Metropolitan Statistical Area (MSA). That area saw prices increase by 9.3 percent between the fourth quarter of 2012 and first quarter of 2013.

• Prices were weakest in the Bridgeport, Stamford, Norwalk, CT MSA, where prices fell 3.5 percent over that period.

• The monthly seasonally adjusted purchase-only index for the U.S. has increased for 14 consecutive months.