Industry News

Pacific states lead real estate price appreciation

Job growth expected to sustain increases

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For the sixth quarter in a row, the Pacific states – which includes Alaska, California, Hawaii, Oregon and Washington – lead the nation in annual house-price appreciation, growing at 20.9 percent, according to Freddie Mac's Conventional Mortgage Home Price Index. During the third quarter, Pacific Division prices increased 6 percent (26.5 percent, annualized). During the last five years, home values have increased 76.8 percent. "The cumulative effect of two years in which 30-year fixed mortgage rates averaged just 5.8 percent and an improving employment picture this year have buoyed the housing market to new highs," said Frank Nothaft, Freddie Mac's chief economist. "The Conventional Mortgage Home Price Index for the third quarter is showing strong growth primarily along the coasts – areas where populations are growing rapidly and there is little available land on which to build new homes. We are expecting national home price growth to slow next year as a result of...