Home Price Rise Largest in 25 Years

The price of an average U.S. home increased 9.36% in the second quarter, the largest such price increase in 25 years, according to figures released Sept. 1 by the Office of Federal Housing Enterprise Oversight.The increase reflects price hikes from June 30, 2003 to June 30, 2004. "These data show no signs of the long-anticipated, and ultimately inevitable, slowing of house price inflation," said OFHEO chief economist Patrick Lawler. But Mr. Lawler added: "House prices may become increasingly vulnerable to potential sustained higher interest rates in the future, but that has not happened so far." The four states experiencing the greatest home price appreciation are Nevada, Hawaii, California, and Rhode Island. The states with the smallest increase are Utah, Texas, and Indiana. OFHEO can be found online at http://www.ofheo.gov.