Although lower priced transactions have become more dominant, overall home prices were higher in January. In addition, the number of home sales rose during February. Prices were strongest in the Rust Belt and weakest on the West Coast.
U.S. home prices increased 1.7 percent from December to January, the Federal Housing Finance Agency reported today. Compared to a year earlier, however, prices were down 6.3 percent.
The House Price Index was 202.7 in January 2009, 199.4 in December 2008 and 216.3 in January 2008.
The figures were derived based on the purchase prices of properties securing mortgages purchased or guaranteed by Fannie Mae or Freddie Mac — which FHFAÂ regulates in addition to the Federal Home Loan Banks.
December’s previously reported increase in home values of 0.1 percent was revised by the FHFA to an 0.2 percent decline.
The volume of sales transactions were relatively low, decreasing the precision of the findings and increasing the size of subsequent revisions, according to the FHFA. Slower volume was confirmed by data from the National Association of Realtors, which reported that January existing home sales were down 5.3 percent from December.
But the NAR reported yesterday that existing home sales rose 5.1 percent last month.
While prices increased in January, the median home price — the level where half of the sales were above and half the sale were below — fell from $174,700 during December to $170,300 in January, according to NAR. Yesterday’s report from the trade group indicated that the median home price fell even further to $165,400 in February.
Home prices peaked in April 2007, when they were 11 percent higher than in January 2009, based on the FHFA’s data.
Prices in the Pacific region — where California is located — were 0.9 percent lower than in December and down 21 percent from January 2008, FHFA reported.
But the East North Central region — which includes Illinois, Michigan and Ohio — was 3.9 percent higher than December.
The Mountain Census Division — which included Arizona, Colorado and Nevada — saw prices rise 0.8 percent in January. In the South Atlantic region — where Florida, Georgia and North Carolina are located — prices were up 3.6 percent.
