Tuesday, July 24, 2012

FHFA: Home prices acccelerate in Mountain region

House prices in May in the Mountain region, which includes Colorado, were up substantially, rising 6.3 percent, year-over-year from May 2011 to May 2012. Nationally, the house price index rose 3.8 percent over the same period. The new house price index numbers, released today by the Federal Housing and Finance Agency, also showed that the national index is down 16.2 percent from the peak level reached in June 2007, while the Mountain region's index is down 26.6 percent over the same period.

The FHFA monthly index is calculated using purchase prices of houses purchased with loans that have been sold to or guaranteed by Fannie Mae or Freddie Mac. It is a repeat-sales index similar to the Case-Shiller index, but limited to GSE loans.

May's year over year increase is the fourth monthy increase in a row this year following more than four years of monthly declines.

The second graph shows each month's house price index compared to the same month a year earlier:

This report is just the latest home price index showing accelerating growth in home prices in the US and regionally.