House Prices Continue to Climb

Data released by the Federal Housing Finance Agency (FHFA) indicates that house prices rose nationally in October 2013 by 0.5% on a seasonally adjusted basis from the previous month.

However, house price changes varied across regions of the country. According to the release, four of the nine Census divisions, the Mountain Division, the Pacific Division, the Middle Atlantic Division, and the South Atlantic Division experienced a monthly gain of 0.9% or more. Monthly growth was more subdued in the West South Central region, the New England Division, and the East North Central. House prices in the West North Central were unchanged while house prices East South Central region of the country fell over the month by 1%.

Over the year, house prices have risen in every region of the country. House prices in the Pacific and in the Mountain regions, which include California and Nevada respectively, have experienced year-over-year gains greater than 10%.

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Data from the S&P/Case-Shiller House Price Index – 20 City confirms the house price appreciation that is taking place in the Pacific and Mountain Census Divisions. In addition, the data indicates that while some cities located in either the Pacific or Mountain Divisions have recorded extraordinary house price appreciation over the year, house price growth is generally strong across these two regions of the country. According to the release, the 20 City HPI rose by 14% over the past twelve months ending in October 2013. Nine cities experienced year-over-year house price appreciation greater than the national rate. Five of these nine cities are located in the either the Mountain or Pacific Census Division, including the four cities experiencing the largest year-over-year growth. The three cities located in the Pacific or Mountain Census Division that experienced year-over-year changes that lagged the national average, Seattle, Portland and Denver, still experienced year-over-year house price gains of 10% or more.

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For full histories of the FHFA US and 9 Census divisions, click here.

For full histories of the composites and 20 markets included in the Case-Shiller composites, click here.