U.S. HOUSE PRICE APPRECIATION RATE REMAINS SLOW, BUT POSITIVE
Virginia is ranked in the "Top 25" for 1-Year Appreciation at 5.42%.
The Office of Federal Housing Enterprise Oversight (OFHEO) reported today (May 31, 2007) that the rate of home price appreciation in the U.S. remained slow but positive in the first quarter of 2007. The OFHEO House Price Index (HPI), which is based on data from sales and refinance transactions, was 0.5 percent higher in the first quarter than in the fourth quarter of 2006. This is moderately below the revised growth estimate of 1.3 percent from the third to the fourth quarter of 2006. Prices in the first quarter of 2007 were 4.3 percent higher than they were in the same quarter in 2006.OFHEO’s purchase-only index, which is based solely on purchase price data, indicates less price appreciation for U.S. houses than the HPI does over the past year. The purchase-only index increased 3.0 percent between the first quarter of 2006 and the first quarter of 2007, compared with 4.3 percent for the HPI.
The figures were released today by OFHEO Director James B. Lockhart, as part of the quarterly report analyzing housing price appreciation trends.
“Although some forecasters expected to see a drop in the HPI, nationwide house prices continued to rise in the first quarter of 2007, albeit at the lowest rate in 10 years,” said Lockhart. “As always, real estate prices are local with seven states showing double-digit annual appreciation rates and seven with rates less than 2 percent. Seven states, including Florida and California, also showed home price depreciation in the first quarter.”
Nationally, house prices grew faster over the past year than did prices of non-housing goods and services reflected in the Consumer Price Index. House prices rose 4.3 percent, while prices of other goods and services, excluding shelter, rose 1.6 percent.
“Low interest rates and unemployment rates continue to prop up house prices in most markets,” said OFHEO Chief Economist Patrick Lawler. “Prices are rising slowly in most areas, however there are some exceptions. For the first time in 7 years, two states — Massachusetts and Michigan — experienced four-quarter price declines,” Lawler said.
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