Recent Updates

  • Malaysia: CPI (Feb); Macao: CPI (Feb); Thailand: International
  • Macao: Public Finance (Jan)
  • US: International Transactions (Q4)
  • France: Imported Raw Materials Prices (Feb), Producer Cost Indices for Construction (Dec)
  • UK: Average Weekly Hours of Work, Labor Market (Dec), Claims, HM Revenue & Customs Receipts, Public Sector Finance (Feb), Earnings (Jan), CBI Industrial Trends Survey (Mar)
  • Turkey: House Sales (Feb); Israel: Revenue Indexes (Jan);
  • more updates...

Economy in Brief

Home Prices Rose More Slowly
by Tom Moeller June 1, 2006

Home prices as measured by the Office of Federal Housing Enterprise Oversight (OFHEO) rose another 2.0% last quarter. The increase was the slowest after rising between 2.5% and 4.5% each quarter for two years.

The OFHEO house price index is a geometric weighted average based on more than 26.5 million repeat transactions (purchase or refinance) over 29 years and 12,000 transactions annually.

Year to year, the 12.5% gain in prices nationwide was the slowest since late 2004.

The purchase only home price index rose 1.8% (10.1% y/y), also its slowest gain in nearly three years after quarterly gains which ranged between 2.1% and 2.9%.

Slower growth in home prices ranged across the country but was pronounced in Massachusetts where prices rose just 0.5% (6.5% y/y). That y/y gain is down from a peak of 14.4% in 2000 and 10.1% last year. Prices also inched up just 0.2% (2.9% y/y) in Michigan, the slowest y/y gain since 1993. In South Dakota, home prices fell 0.1% (+6.1% y/y).

In New York, house prices rose 1.9% (12.4% y/y) and in California prices rose 2.5% (19.2% y/y), a slowdown from the 28.0% y/y gain in late 2004.

House price appreciation continued strong in Florida as evidenced by a 4.3% (26.6% y/y) gain. Last year prices in Florida rose 25.9% and in 2004 were up 17.0%.

View the latest OFHEO release here.

OFHEO 1Q06 4Q05 Y/Y 2005 2004 2003
House Price Index 2.0% 3.1% 12.5% 13.3% 10.8% 6.9%
large image