Home Appreciation Slows in August: FHFA
Home price appreciation decelerated in August to the slowest pace since July 2012, according to a house price index based on Fannie Mae and Freddie Mac purchase mortgage transactions.
The Federal Housing Finance Agency HPI rose 0.3% in August, compared to 0.8% in the prior month. Overall, the HPI is up 8.5% since August 2012.
Of the nine regions tracked by FHFA, just two experienced price depreciation in August. Prices in the East North Central region (Michigan, Wisconsin, Texas, Indiana and Ohio) fell 0.3% from July and prices in the South Atlantic region (Delaware, Maryland, Washington, D.C., Virginia, West Virginia, North Carolina, South Carolina, Georgia and Florida) fell 0.5%.
Prices in the Mountain and Pacific states jumped 1.3% and 0.8%, respectively, month-over-month and they are the only regions with double-digit price increases year-over-year.
Home prices in the Pacific region (Hawaii, Alaska, Washington, Oregon and California) are up 18% since August 2012 and prices in the Mountain states (Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona and New Mexico) are up 14%.
However, price appreciation might be cooling in the Pacific states. Prices rose 0.8% in August from 2% in July, according to FHFA’s report released Wednesday.
The mid-Atlantic and New England regions, which were hit by Hurricane Sandy last year, are still lagging the other regions.
Year-over-year prices in the mid-Atlantic (New York, New Jersey and Pennsylvania) region and New England region are up just 4%.