FHFA: Sept. Home Prices Up 0.6% Month-to-Month
For the third quarter (3Q), home prices rose 5.5% year-to-year and 2.1% quarter-to-quarter as a dearth of listings pushed the rate of price increases even higher.
WASHINGTON – U.S. house prices rose 5.5% between the third quarter of 2022 and the third quarter of 2023, according to the Federal Housing Finance Agency (FHFA) House Price Index (FHFA HPI). House prices were up 2.1% compared to the second quarter of 2023.
Month-to-month, FHFA’s seasonally adjusted index found September prices up 0.6% compared to August.
“U.S. house price growth continued to accelerate in the third quarter, appreciating more than in each of the previous four quarters,” says Dr. Anju Vajja, principal associate director in FHFA’s Division of Research and Statistics. “House prices rose in the third quarter in all census divisions and are higher than one year ago, driven primarily by a low supply of homes for sale.”
Notable findings in FHFA’s latest report
- The U.S. housing market has seen positive annual appreciation each quarter since the start of 2012.
- House prices rose in 49 states in 3Q year-to-year, with the highest appreciation in Vermont, 11.8%; Maine, 11.1%; New Hampshire, 10.3%; Connecticut, 9.9%; and New Jersey, 8.7%.
- Two areas with annual price depreciation were Hawaii, down 0.9%; and the District of Columbia, down 0.8%.
- House prices rose in 93 of the top 100 largest metropolitan areas over the last four quarters. The annual price increase was highest in Albany-Schenectady-Troy, N.Y. (MSAD) at 12.4%, and lowest in Austin-Round Rock-Georgetown, Texas, where it declined 5.0%.
- All nine census divisions had positive house price changes year-over-year. The New England division recorded the strongest appreciation at 9.2% year-to-year, and the Pacific division recorded the smallest four-quarter appreciation at 2.0%.
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