U.S. house prices rose 1.6% in the second quarter of 2017 from the prior quarter, according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI) released Tuesday House prices rose 6.6% from the second quarter of 2016 to the second quarter of 2017. FHFA's seasonally adjusted monthly index for June was up 0.1% from May.
The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.
"U.S. house prices rose in most states during the second quarter," said FHFA Senior Economist William Doerner. "New home sales are climbing but, relative to the overall population, they still remain low from a historical perspective. The tight inventory is a major explanation for why house prices have been increasing every quarter over the last six years."
Home prices rose in 48 states and the District of Columbia between the second quarter of 2016 and the second quarter of 2017. The top five states in annual appreciation were: 1) Washington 12.4%; 2) Colorado 10.4%; 3) Idaho 10.3%; 4) Florida 9.4%; and 5) Utah 9.2%.
Among the 100 largest metropolitan areas in the U.S., annual price increases were greatest in the Seattle-Bellevue-Everett, WA (MSAD), where prices increased by 15.7%. Prices were weakest in New Haven-Milford, CT, where they rose by 0.1%.
Of the nine census divisions, the Pacific division experienced the strongest increase in the second quarter, posting a 2.6% quarterly increase and a 8.9% increase since the second quarter of last year. House price appreciation was weakest in the Middle Atlantic division, where prices rose 0.8% from the last quarter.
