Home prices continue their upward trajectory, according to the latest reading of the Federal Housing Finance Agency (FHFA) House Price Index (HPI®). Year-over-year, second-quarter home prices increased by 17.4%, up 4.9% from the previous quarter. On a seasonally adjusted basis for June, the index increased 1.6%.
Key findings:
– Home values have increased for 40 consecutive quarters since September 2011.
– Prices rose in all 50 states and the District of Columbia between the second quarters of 2020 and 2021.
– These states had the highest annual appreciation: Idaho (37%), Utah (28.3%), Arizona (23.9%), Montana (23.7%) and Rhode Island (23.7%).
– These reported the lowest annual appreciation: Alaska (8.2%), North Dakota (8.7%), Louisiana (9.6%), Mississippi (11.4%) and Iowa (11.5%).
– Property prices increased across the top 100 largest metropolitan areas over the last four quarters.
– Annual price increases were greatest in Boise City, Idaho (+41.1%) and the weakest in San Francisco-San Mateo-Redwood City, Calif., (+4.5%).
– Of the nine census divisions, the Mountain division had the strongest four-quarter appreciation—up 22.9% between the second quarters of 2020 and 2021 and up 6.8% in the second quarter of 2021—leading in annual growth for 15 quarters.
– Annual house price appreciation was weakest in the West North Central division—prices increased by 14.9% YoY in the second quarter.
The takeaway:
“During the second quarter, house prices peaked in June with an 18.8% growth rate compared to a year ago,” said Dr. Lynn Fisher, deputy director of FHFA’s Division of Research and Statistics, in a statement. “For the quarter, annual gains surpassed 20% in the Mountain, New England, and Pacific census divisions and in all of the top 20 metro areas.”
