Second-quarter home prices rose 1.8% from the first quarter, according to the Federal Housing Finance Agency, the largest sequential increase since the fourth quarter of 2005.
The agency’s seasonally adjusted purchase-only house price index reveals that home prices rose 3% in the second quarter from year-ago levels. (Click on chart for a historical comparison.) Its monthly index ascended 0.7% in June from May.
“Although some housing markets are still facing significant challenges, house prices were quite strong in most areas in the second quarter,” FHFA Principal Economist Andrew Leventis said. “The strong appreciation may partially reflect fewer homes sold in distress, but declining mortgage rates and a modest supply of homes available for sale likely account for most of the price increase.”
The FHFA’s HPI rose in 43 states during the second quarter. Of the nine census divisions, the Mountain division experienced the strongest price appreciation at 4.2%. The New England division had the weakest movement, with prices remaining flat throughout the quarter.
Among the 25 most populated metros in the nation, the Miami area saw second-quarter prices rising the most. Prices shot up 8.3% from the second quarter. Prices were weakest in the New York area, falling 1.5% over that period.