Housing prices apparently still aren’t done sliding down their slippery slope. According to the Federal Housing Finance Agency (FHFA) third quarter report released Wednesday, data showed the downturn continues.
After a flat July-to-August period and a 0.7% monthly drop in September, the 1.6% overall third-quarter drop added up to a 3.2% drop compared to the same quarter last year. Adjusted for inflation, that number tanks even further to 5.1%, while the cost of other goods and services rose 2% over the same period.
The Census regions of New England (Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut) and Mountain (Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona, and New Mexico) experienced the most dramatic price movements on a quarterly basis. While prices rose 0.9% in New England, prices fell 4.0% in the Mountain region, according to FHFA data.
In additional quarterly numbers, home values increased over the past year in the District of Columbia, plus the states of West Virginia, Alaska, North Dakota, Louisiana, Maine, Texas, Massachusetts, South Dakota, Kentucky, and Indiana. D.C. led the nation in terms of home price growth both in the latest quarter, with a 6.79% increase, and the year, with a 5.29% jump.
The FHFA home price index is based on the purchase prices of homes with loans owned or guaranteed by Freddie Mac and Fannie Mae in all 50 states. This typically results in less dramatic home price changes than the competing S&P/Case-Shiller home price index, which focuses on all homes sold (including those with jumbo loans) in 20 major housing markets around the country.
Matthew Phair is a freelance writer in New York.
Learn more about markets featured in this article: Providence, RI.