02 Jun House Prices Record Annual Gains, Expected to Rise in the Future
The recent release by the Federal Housing Finance Agency (FHFA) shows that its measure of house prices, House Price Index – Purchase Only, rose by 5.1 percent on a 12-month seasonally adjusted basis in January 2015. This marks the 36th consecutive month of year-over-year growth. Over this nearly three-year period, house prices have risen 20.1%.
Similarly, the recent release from Standard and Poor’s (S&P) and Case-Shiller indicates that their measure of national house prices, the House Price Index – National, rose by 4.5 percent on a year-over-year seasonally adjusted basis. This is the 33rd consecutive month of year-over-year increases in the house price index. Over this period of more than two-and-a-half years, house prices have risen 22.1 percent.
House prices are expected to continue to grow and few expect house prices to go down. According to separate data from Fannie Mae, although most expect house prices to continue to go up, senior mortgage executives are more optimistic about house price growth than the average consumer. The difference in the level of optimism about future house price growth largely reflects consumers’ view that house prices will likely stay the same over the year.
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