The February 2020 First American Real House Price Index (RHPI) shows that real house prices decreased 1.6 percent between January 2020 and February 2020 and declined 5.8 percent between February 2019 and February 2020.
These figures suggest real house prices are 19.8 percent less expensive than they were in January 2000.
Consumer house-buying power (how much house one can buy based on changes in income and interest rates) increased 2.5 percent between January 2020 and February 2020, and increased 14.6 percent year over year.
While unadjusted house prices are now 10.3 percent above the housing boom peak in 2006, real, house-buying power-adjusted house prices remain 42.8 percent below their 2006 housing boom peak.
“As the coronavirus outbreak continues to affect the domestic and global economy, the housing market has shown that it is not immune to its impact,” says Mark Fleming, chief economist at First American. “While mortgage rates have fallen due to the current economic uncertainty, stay-at-home orders have made it more difficult for potential home buyers to take advantage of the affordability boost, and first-time home buyers may have an even more difficult time as lenders have tightened credit availability.”
The only state with a year-over-year increase in the RHPI is New Jersey, at +1.5 percent. The five states with the greatest year-over-year decrease in the RHPI are Hawaii (-8.7 percent), New Mexico (-8.6 percent), Colorado (-8.5 percent), California (-8.2 percent), and Utah (-8.0 percent).
Among the Core Based Statistical Areas (CBSAs) tracked by First American, the two markets with a year-over-year increase in the RHPI are Cleveland (+0.4 percent) and Milwaukee (+0.3 percent). The five markets with the greatest year-over-year decrease in the RHPI are San Francisco (-10.8 percent), Denver (-9.5 percent), Las Vegas (-9.4 percent), Riverside, Calif. (-9.1 percent), and San Jose, Calif. (-8.9 percent).