Home prices in the U.S. grew 1.5 percent in the third quarter of 2016, according to the Federal Housing Finance Agency’s (FHFA) recently released House Price Index (HPI), up 6.1 percent since the third quarter of 2015. Prices grew in 49 states, with Delaware and the District of Columbia showing no appreciation.
“Our data indicate the deceleration in home price growth that we observed in late spring proved to be short-lived,” says FHFA Supervisory Economist Andrew Leventis. “While price growth in select markets has cooled somewhat, for the U.S. as a whole, the third quarter showed no evidence of a widespread slowdown.”
Upward price movement in the third quarter, based on the Index, was concentrated in the South Atlantic region, showing a 1.8 percent increase quarter-to-quarter and a 7.1 percent increase year-over-year. The region’s average price per square foot, according to Clear Capital, was $106 in the third quarter, more affordable than the national average of $135. The New England region showed the least upward movement, at 0.8 percent quarter-to-quarter.
Prices trekked up most in Florida, Oregon and Washington, and Colorado, at 10.7 percent, 10.4 percent and 10.0 percent, respectively. The metropolitan area with the most growth in the third quarter was Tacoma-Lakewood, Wash. at 12.9 percent, while the area with the least growth was New Haven-Milford, Conn., at negative 1.7 percent.
The House Price Index (HPI) is an indicator that assesses home prices from mortgages sold to or guaranteed by Fannie Mae and Freddie Mac.