HOUSE PRICE APPRECIATION CONTINUES AT ROBUST PACE
Price Index Shows Annual Rise of Nearly 13 Percent; Unprecedented Increases in 26 Metropolitan Areas
WASHINGTON, D.C. " Average U.S. home prices increased 12.95 percent from the fourth quarter of 2004 through the fourth quarter of 2005. Appreciation for the most recent quarter was 2.86 percent, or an annualized rate of 11.4 percent. The increase during 2005 is similar to the revised increase of 12.55 percent for the year ended with the third quarter of 2005, showing no evidence of a slowdown. The figures were released today by OFHEO Acting Director Stephen A. Blumenthal, as part of the House Price Index (HPI), a quarterly report analyzing housing price appreciation trends.
"Despite recent indications that a slowdown may be forthcoming, house price appreciation during 2005 continued to hover at near-record levels,"said OFHEO Chief Economist Patrick Lawler.
House prices continued to grow considerably faster over the past year than did prices of non-housing goods and services reflected in the Consumer Price Index. House prices rose 12.95 percent, while prices of other goods and services rose only 4.3 percent.
"While deceleration continues in some areas, appreciation generally is still extremely strong," said Lawler. "Mortgage rates climbed significantly during the second half of last year, but the effect of that increase on price appreciation so far appears to be limited."
There will be much more coverage of these number today and tomorrow on this blog. Stay Tuned. It would be great for readers to also post interesting findings. There is a lot of material to digest here.