House prices rose 1.9% for Q1 2013, according to a Federal Housing Finance Agency (FHFA) report (link opens as PDF) released today. These newest numbers mark the seventh straight seasonally adjusted quarterly increase in home purchase prices.
Source: fhfa.gov
"The housing market has stabilized in many areas and homebuilding activity has strengthened in recent quarters," noted FHFA Principal Economist Andrew Leventis in a statement today. "That said, labor market weakness and still-elevated foreclosure pipelines remain hindrances to a more robust recovery."
Compared to Q1 2012, home prices are 6.7% higher. On a month-to-month basis, March's numbers came in 1.3% above February's, outstripping analysts' estimates of a 0.9% bump . Prices also grew a seasonally adjusted 1.4% for Q4 2012.
Although improving home prices are a potentially positive sign for the market, many housing analysts have pointed to a "supply squeeze" that could create trouble down the road.
Commenting on untapped potential in the existing-homes market, National Association of Realtors Chief Economist Lawrence Yun stated yesterday, "The robust housing market recovery is occurring in spite of tight access to credit and limited inventory."
