FHFA: Home Prices Rise 1.3 Percent in Q1 – NMP Skip to main content

FHFA: Home Prices Rise 1.3 Percent in Q1

NationalMortgageProfessional.com
May 27, 2014

U.S. home prices rose 1.3 percent in the first quarter of 2014 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI), marking the 11th consecutive quarterly price increase in the purchase-only, seasonally adjusted index. "Although the first quarter saw relatively weak real estate transaction activity—in part due to seasonal factors—home prices continued to push higher in the first quarter," said FHFA Principal Economist Andrew Leventis. "Modest inventories of homes available for sale likely played a significant role in driving the price increase, which was similar to appreciation in the preceding quarter." The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. Compared with last year, house prices rose 6.6 percent from the first quarter of 2013 to the first quarter of 2014. FHFA's seasonally adjusted monthly index for March was up 0.7 percent from February. FHFA's expanded-data house price index, a metric that adds transaction information from county recorder offices and the Federal Housing Administration to the HPI data sample, rose 1.4 percent over the prior quarter. Over the last year, that index is up 7.0 percent. For individual states, price changes reflected in the expanded-data measure and the traditional purchase-only HPI are compared on pages 17-19 of this report. The seasonally adjusted, purchase-only HPI rose 6.6 percent from the first quarter of 2013 to the first quarter of 2014 while prices of other goods and services rose only 0.8 percent. The inflation-adjusted price of homes rose approximately 5.7 percent over the latest year. Significant Findings: ►The seasonally adjusted, purchase-only HPI rose in 42 states and the District of Columbia during the first quarter of 2014 (up from 38 states during the fourth quarter of 2013). The top annual appreciation was in: 1) Nevada, 2) District of Columbia, 3) California, 4) Arizona, and 5) Florida. ​►Of the nine census divisions, the Pacific division experienced the strongest increase in the first quarter, posting a 2.1 percent increase and a 13.2 percent increase since last year. House prices were weakest in the Middle Atlantic division, where prices increased 0.1 percent from the prior quarter. ​►As measured with purchase-only indexes for the 100 most populated metropolitan areas in the U.S., first quarter price increases were greatest in the Charleston-North Charleston, SC Metropolitan Statistical Area (MSA) where prices increased by 10.7 percent. Prices were weakest in the New Orleans-Metairie, LA MSA, where they fell 2.6 percent. Positive appreciation was recorded in 71 of the 100 MSAs. ​►The monthly seasonally adjusted purchase-only index for the U.S. has increased for 23 of the last 24 months (November 2013 showed a decrease). ​►The Pacific and Mountain census divisions—the two divisions that saw the greatest price increases between March 2012 and March 2013—saw substantive decelerations over the latest 12 months.  Price appreciation was 12.4 percent between March 2013 and March 2014 in the Pacific Division, more than three percentage points below the rate for the preceding 12 months. At 9.8 percent, the last 12-month appreciation in the Mountain division was more than four percentage points below the rate in the preceding 12 months. ​►FHFA's "distress-free" house price indexes, which are published for 12 large metropolitan areas on page 32, have recently reported lower quarterly appreciation than FHFA's traditional purchase-only indexes. In nine of the areas covered, the new series—which removes short sales and sales of bank-owned properties—shows lower appreciation over the last quarter than the purchase-only series. During the last year, the share of Fannie Mae and Freddie Mac mortgages financing distressed sales has fallen by at least 10 percentage points in more than half of the areas covered by the FHFA indexes.
Published
May 27, 2014
loanDepot And mellohome's 'Grand Slam' Experience Builds Momentum

After recently launching Grand Slam, a new buying experience, loadDepot and its sister company, mellohome, has seen more than 1,400 accepted customer offers.

Industry News
Dec 08, 2021
SoCal VA Homes Stresses Importance Of New VA Loan Limits

SoCal VA Homes, a company that works exclusively with active military and Veteran homebuyers, expressed how important the Federal Housing Finance Agency's new conforming loan limit is to the demographic.

Military Lending
Dec 08, 2021
OpenClose Launches Mobile Assist

OpenClose, a fintech provider of mortgage software solutions for banks, credit unions, and mortgage lenders launched its native mobile app platform, Mobile Assist.

Tech
Dec 07, 2021
Deephaven Heightens Foreign National DSCR Program

Deephaven is amping up its Foreign National DSCR Program as a response to the increase in the real estate investment market.

Non-QM
Dec 07, 2021
Revolution Mortgage Opens Second Mortgage Branch In Cincinnati

Columbus, OH-based Revolution Mortgage announced the opening of its second branch in Cincinnati and 14th branch in Ohio.

Industry News
Dec 06, 2021
Nations Lending Teams Up With NBA Legend Dennis Rodman On Integrated Brand Campaign

Nations Lending, a full-service national mortgage lender, announced the launch of its first integrated brand campaign starring NBA Champion and All-Star Dennis Rodman.

Sales and Marketing
Dec 06, 2021