Home Prices Slowing Down

The Office of Federal Housing Enterprise Oversight (OFEHO) reported last week its home-price index was up 12.5% in the past year and up 2% from the 4th quarter to the first quarter. It was the slowest quarterly gain in prices in two years, as prices fell in some of the hot markets in California. The median price of a new home is up 0.9% in the past year. The median price of an existing home is up 4.2%.

Arizona continued to have the fastest growth in prices, but its growth rate fell in half during the 1st quarter. Prices in Arizona are up 32.8% in the past year. Other states with fast price appreciation in the past year have been Florida, Hawaii, Oregon, the District of Columbia, Maryland and Idaho. All saw prices rise more than 20% in the past year. Prices in California were up 19.2% in the past year. States with the slowest home price gains were Michigan, Ohio, Indiana, Nebraska, Kansas and Iowa. All had year-over-year price gains of less than 5%.

Among 275 metro areas, St. George, UT, had the year-to-year gain at 38.4%. It was followed by Naples, FL (37.7%), Fort Myers, FL (36.9%), Phoenix, AZ (36.5%) and Lakeland, FL (35.6%). Among 275 metro areas, 53 saw prices decline from the 4th quarter to the 1st quarter, including some hot markets in California. Prices declined on a quarterly basis in San Jose, Santa Barbara, Santa Rosa, Sacramento and Salinas in California, even though prices are still up more than 10% year-over-year. The smallest annual gains were in Saginaw, MI (0.1%), Anderson, IN (0.8%), Erie, PA (1%), Canton, OH (1.2%), and Lafayette, IN (1.2%). Among 275 metro areas, 53 saw prices decline from the 4th quarter to the 1st quarter.

How much does your house cost? You may use this very good home price calculator from OFEHO's site.