Housing prices up 0.8% in April
House prices rose slightly in April, after 10 consecutive months of decline
House prices rose slightly in April, after 10 consecutive months of decline, according to the National Association of Home Builders’ blog.
The Federal Housing Finance Agency (FHFA) reported a 0.8% increase in their monthly purchase-only house price index (HPI) in April, up to a seasonally adjusted level of 182.4. This signals an end to an extended period of decline in which the index has fallen 5.7% over the past year and 19.3% below its April 2007 peak.
The FHFA HPI release includes the monthly price changes for the nine census divisions. An increase in the HPI was observed in six divisions, with the strongest rise observed in the New England (+2.2%) (dominated by Massachusetts), followed by the West South Central (+2.1%) (dominated by Texas) and East South Central (+1.8%). House prices continued to decline in the Mountain (-1.3%) (Arizona, Nevada), West North Central (-0.6%) (Michigan, Illinois, Ohio) and South Atlantic (-0.2%) (dominated by Florida) divisions.
Stable house prices over the remainder of 2011 should help to restore consumer confidence and bolster housing demand. By 2012, house prices are expected to trend higher and usher in a housing market recovery that will likely run for several years.