Average U.S. home prices increased 9.36 percent from the second quarter of 2003 through the second quarter of 2004, according to figures released today from the Office of Federal Housing Enterprise Oversight’s House Price Index.

Appreciation for the most recent quarter was 2.21 percent, or an annualized rate of 8.83 percent, according to OFHEO’s index, a quarterly report that analyzes housing-price appreciation trends.

“The appreciation over the past year is the largest four-quarter increase since 1979,” said Patrick Lawler, chief economist at OFHEO. “These data show no signs of the long-anticipated, and ultimately inevitable, slowing of house-price inflation.” The quarterly appreciation is more than 50 percent faster than the upward revised 1.45 percent increase in the first quarter of 2004. Over the past four quarters, house price rises far exceeded gains in the prices of non-housing goods and services incorporated into the Consumer Price Index. House prices rose 9.36 percent, while the price of other goods and services rose 3.03 percent.

The four states experiencing the greatest increases over the past year are: Nevada, Hawaii, California and Rhode Island. Like last quarter, the smallest increases occurred in Utah, Texas and Indiana. However, this time no states experienced negative quarterly growth.

By region, price changes have actually slowed in the New England and West South Central (Arkansas, Louisiana, Texas and Oklahoma) Census divisions. New England “slowed” to a 10.65 percent increase, while West South Central prices rose only 3.83 percent – the smallest increase of all census divisions.

OFHEO’s House Price Index reflects price movements on a quarterly basis of sales or refinancings of single-family homes whose mortgages have been purchased or securitized by Fannie Mae or Freddie Mac.

***

What’s your opinion? Send your Letter to the Editor to newsroom@inman.com.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Inman Connect Las Vegas is back! A limited number of presale tickets are on sale now. Register today before they're gone.REGISTER×
Real estate news and analysis that gives you the inside track. Subscribe to Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription