House prices in the U.S. rose 0.8 percent in September on a seasonally adjusted basis, according to the Federal Housing Finance Agency (FHFA) monthly House Price Index (HPI). On a quarterly basis, house prices increased by 1.3 percent from the second quarter, and 5.7 percent from the third quarter of 2014.
“The long-anticipated slowdown in home price appreciation did not occur in the third quarter,” says FHFA Principal Economist Andrew Leventis. “The factors that have contributed to extraordinary price growth over the last few years – low interest rates, tight inventories, strong buyer confidence, and improving income growth – continued to drive prices upward in much of the country. However, as prices continue to rise, reduced affordability will be a stronger market headwind.”
Prices rose in all nine census divisions in September, with increases ranging from 0.1 percent in the West North Central and East South Central Regions, to 1.4 percent in New England. On a yearly basis, the Mountain and Pacific regions posted the strongest gains, with house prices increasing by 9.3 and 8.3 percent respectively. The Middle Atlantic region posted the softest gains, with prices rising only 3.6 percent over the year.
Read the FHFA release.
