House Prices Continue to Improve in July

Despite these recent gains, the HPI remains 3.3 percent below its year ago level and 18.4 percent below its peak recorded back in April 2007.

Federal Housing Finance Agency reported a 0.8 percent increase in the monthly purchase-only house price index (HPI).

An increase in the HPI was observed in eight of the nine Census divisions. The West North Central (+3.6 percent), East South Central (+3 percent) and Pacific (+1.2 percent), all achieved solid gains. The South Atlantic (-0.4 percent) was the only region to experience a decline. The state-level HPI data are only provided quarterly.

The regional picture has been improving steadily over the past three months with five of the nine regions experiencing an increase in HPI in May, and six regions with an increase in June. This progression indicates that house prices are firming and the improvements are being experienced in all regions. The gain in the national number is not the result of strong growth in just a few regions, with others being left behind.

The recent string of four consecutive gains in the FHFA HPI is promising sign that house prices have reached the trough and are returning to a path of slow but steady increases.

- Courtesy of NAHB