Home prices rose 1.8% in the second quarter compared with the previous quarter and were up 3% year-over-year accounting for seasonal adjustments, according to data released Thursday by the Federal Housing Finance Agency. The increase marks the largest quarterly price increase since the fourth quarter of 2005, the FHFA reported.
The house price index (HPI) data follows reports from several housing indicators that have suggested a bottoming out of home prices in recent months.
“Although some housing markets are still facing significant challenges, house prices were quite strong in most areas in the second quarter,” said FHFA Principal Economist Andrew Leventis. “The strong appreciation may partially reflect fewer homes sold in distress, but declining mortgage rates and a modest supply of homes available for sale likely account for most of the price increase.”
FHFA examined regional data, finding the seasonally adjusted purchase-only HPI rose in 43 states in the second quarter.
Written by Elizabeth Ecker
