Home Prices Are On the Rise

In the latest sign of the slow recovery in the U.S. housing market, the Federal Housing Finance Agency has announced that its FHFA House Price Index rose 0.7% in August. Despite a downward revision to July's figures, the index has risen 4.7% over the past year.

The index, which measures purchase prices and refinancing appraisals for homes with mortgage financing through either Fannie Mae or Freddie Mac, showed the greatest strength in the Pacific region, which posted a 3% gain. The only one of the nine regions tracked by the FHFA that saw prices drop was the East South Central region, covering Kentucky, Tennessee, Mississippi, and Alabama.

Looking at changes since August 2011, it's clear that different regions are recovering at different paces from the housing downturn. The Mountain region, which includes hard-hit markets Nevada and Arizona, saw prices soar 11.4% over the past year. But New England and the mid-Atlantic states had much more tepid growth, with New York, New Jersey, and Pennsylvania home prices rising just 0.4% in the last 12 months.

Even with the gains, though, the housing market has a long way to go to gain back all of its losses. The current FHFA House Price Index level is about the same as it was in June 2004, nearly three years before the index hit its peak. Prices remain nearly 16% below the April 2007 high-water mark.

The next reading for the FHFA House Price index will come Nov. 27 and will include a more extensive quarterly summary.

Fool contributor Dan Caplinger has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2072889, ~/Articles/ArticleHandler.aspx, 10/26/2016 3:51:47 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,215.74 46.47 0.26%
S&P 500 2,139.88 -3.28 -0.15%
NASD 5,252.63 -30.77 -0.58%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes