Home prices continued their strong two year-long national trajectory
by increasing 2.1 percent in the second quarter and 0.7 percent from May to
June, the last month of that quarter. The
Federal Housing Finance Agency (FHFA) said the second quarter was the eighth
consecutive one in which its purchase only Home Price Index (HPI) had increased
on a seasonally adjusted basis and FHFA's Principal Economist Andrew Leventis called
it one of the strongest quarters since the boom prior to the housing crash. The index for the second quarter of 2013 was
up 7.2 percent from Q2 2012 figures.
Seven of the nine U.S. Census Bureau divisions posted
monthly increases in June with the East South Central division having the
largest increase at 1.6 percent followed by the Pacific region at 1.3 percent. The two regions in which prices dipped were
New England (-0.3 percent) and the Middle Atlantic (-0.6 percent).
The index rose 7.7 percent compared to June 2012 and each of
the nine U.S. Census Bureaus also posted annual increases ranging from a
maximum of 17.0 percent in the Pacific Region followed by 11.0 percent in the
Mountain division. The smallest increases
were logged in the Middle Atlantic (2.5 percent) and New England (3.7 percent).
The seasonally adjusted purchase-only HPI rose in 47 states
and the District of Columbia. Prices
fell in Hawaii (-1.93 percent), West Virginia (-0.64 percent), and Montana
The HPI is calculated using home sales prices from mortgages
sold to or guaranteed by Fannie Mae and Freddie Mac. FHFA also maintains an expanded data HPI
which adds transaction information from county recorder offices and the Federal
Housing Administration to the basic HPI data.
That index rose 2.4 percent over the latest quarter and is up 7.5
percent over the last four quarters.