FHFA: Home Prices Increased 0.5% In October

U.S. home prices increased 0.5% on a seasonally adjusted basis in October compared with September and increased 6.1% compared with October 2014, according to theFederal Housing Finance Agency’s (FHFA) monthly home price index (HPI).

The previously reported 0.8% increase in September was revised downward to reflect a 0.7% increase.

In a blog post on OurBroker.com, housing industry expert Peter G. Miller says the FHFA’s data confirms that U.S. home prices have, on average, now climbed back to the pre-crisis high seen in March 2007.

“OurBroker.com asked FHFA about this, and now the word has come back: Home prices nationwide have reached a new high,” Miller writes in his post. “The index for the monthly HPI – the ‘purchase-only’ series – is .3 percent above the March 2007 level.

“This is a huge deal,” Miller adds. “Home prices across the U.S. have been in a ditch since 2007, when the mortgage meltdown demolished much of the housing market.”

However, Miller cautions, “Some areas are doing better than others.” He further points out that the FHFA’s HPI is not adjusted for inflation.

“The typical existing home sold for $217,400 in March 2007,” Miller writes. “If we correct for inflation, it would take $248,849 to buy that same house with today’s dollars. When we correct for inflation, there is a very long way to go before we catch up with 2007 in real terms.”


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