OFHEO: Home Price Hikes Highest in 25 Years

Home prices increased by an annualized rate of 18.5% in the third quarter, the fastest appreciation recorded in 25 years, according to new figures released by the Office of Federal Housing Enterprise Oversight."The appreciation reflected in this quarter's report shows further acceleration from already rapid increases," said OFHEO Director Armando Falcon Jr. The agency added that the price increase is particularly steep when compared with the price of nonhousing goods and services. The states with the highest appreciation were: Nevada (36%), Hawaii (28%), California (27%), District of Columbia (24%), Rhode Island (23%), and Maryland (22%). Seventeen of the 20 metropolitan statistical areas with the largest price gains are in California. (See the Dec. 6 issue of National Mortgage News for more details.)