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Economy in Brief

Home Price Appreciation Varies
by Tom Moeller November 11, 2004

New home price appreciation across the US varies widely; by what is measured and by region.

The average price of a new home rose 8.4% through 3Q, a slowdown from the peak rate of appreciation of 13.7%. Median prices through 3Q rose 9.7%, down from a 15.4% peak in 1Q04.

Adjusted for quality improvements, the Census Bureau estimates that new home prices rose a lesser 6.4% through 3Q.

Older existing single family home prices rose a median 7.7% y/y through 3Q. That, however, reflects a 10.6% rise through 1Q04 in improvements (+14.2%) and repairs (2.3%).

Location, Location, Location: Home price appreciation in the Western region of the US during 2003 was roughly triple that in the Midwest, a comparison driven at least in part by 0.8% growth in employment in the West (2.5% in '04) versus 0.1% growth in the Midwest (0.9% in '04).

Are Home Prices the Next "Bubble"? from the Federal Reserve Bank of New York can be found here.

New Single Family Home Prices 1 Year Chg. 2 Year Chg. (AR) 5 Year Chg. (AR)
US (Average) 8.4% 11.0% 6.9%
Quality Adjusted 6.4% 6.9% 5.1%
 By Region Thru 2003:      
  West 8.9% 7.9% 6.5%
  Northeast 7.8% 5.9% 5.6%
  South 4.4% 3.6% 3.6%
  Midwest 3.3% 3.8% 3.4%
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