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House Price Index

U.S. House Price Index Report - 4Q 2018

Published: 2/26/2019

U.S. house prices rose 1.1 percent in the fourth quarter of 2018 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI).  House prices rose 5.7 percent from the fourth quarter of 2017 to the fourth quarter of 2018.  FHFA’s seasonally adjusted monthly index for December was up 0.3 percent from November.

The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.  

“House prices rose throughout 2018 but at a slower rate than in recent years,” said Dr. William Doerner, Supervisory Economist.  “In the fourth quarter, house price appreciation hit one of the lowest levels in the past four years.”

See video of highlights for the fourth quarter featuring Dr. Doerner. 

Significant Findings

  • Home prices rose in all 50 states and the District of Columbia between the fourth quarters of 2017 and 2018.  The top five areas in annual appreciation were: 1) Idaho 11.9 percent; 2) Nevada 11.2 percent; 3) Utah 9.8 percent; 4) Georgia 8.2 percent; and 5) Arizona 8.2 percent.  The areas showing the smallest annual appreciation were:  1) North Dakota 0.0 percent; 2) Connecticut 0.9 percent; 3) West Virginia 1.6 percent; 4) Louisiana 1.8 percent; and 5) Oklahoma 2.0 percent.
  • Home prices rose in 98 of the 100 largest metropolitan areas in the U.S. over the last four quarters.  Annual price increases were greatest in San Francisco-San Mateo-Redwood City, CA (MSAD), where prices increased by 17.0 percent.  Prices were weakest in Urban Honolulu, HI, where they fell by 2.0 percent.
  • Of the nine census divisions, the Mountain division experienced the strongest four-quarter appreciation, posting an 8.1 percent gain between the fourth quarters of 2017 and 2018 and a 1.6 percent increase in the fourth quarter of 2018.  Annual house price appreciation was weakest in the West South Central division, where prices rose by 4.3 percent between the fourth quarters of 2017 and 2018.

Related News Release​

Link to video​ detailing the basic methodology behind the FHFA HPI.

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