U.S. Home Prices Rise 6.3 Percent Year-Over-Year

U.S. Home Prices Rise 6.3 Percent Year-Over-Year

Led by strong gains in Idaho, Nevada and other Mountain states, residential home prices rose 1.3 percent in the third quarter of 2018 and 6.3 percent year-over-year, according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI).

The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.

Highlights:

  • Home prices rose in 50 states and the District of Columbia between the third quarter of 2017 and the third quarter of 2018.  The top five areas in annual appreciation were:  1) Idaho 15.1 percent; 2) Nevada 15 percent; 3) Washington 10.6 percent; 4) Utah 10 percent; and 5) Colorado 9.2 percent. The areas showing the smallest annual appreciation were:  1) Alaska 0.2 percent; 2) North Dakota 1.0 percent; 3) Louisiana 1.5 percent; 4) District of Columbia 1.6 percent; and 5) Connecticut 2.2 percent.
     
  • Home prices rose in 99 of the 100 largest metropolitan areas in the U.S. over the last four quarters. Annual price increases were greatest in Boise City, ID, where prices increased by 20.1 percent. Prices were weakest in Honolulu (“Urban Honolulu”), HI where they fell be 5.2 percent.
     

Of the nine census divisions, the Mountain division experienced the strongest four-quarter appreciation, posting an 8.9 percent gain between the third quarters of 2017 and 2018 and a 1.5 percent increase in the third quarter of 2018.  Annual house appreciation was similarly weak in the New England, Middle Atlantic, and West South Central divisions, where prices rose less than five percent between the third quarters of 2017 and 2018.