From The Federal Housing Finance Agency U.S. Monthly House Price Index Rises 0.7 Percent From October To November
WASHINGTON, DC – U.S. house prices rose 0.7 percent on a seasonally adjusted basis from October to November, according to the Federal Housing Finance Agency’s monthly House Price Index. October’s previously reported 0.6 percent increase was revised downward to a 0.4 percent increase. For the 12 months ending in November, U.S. house prices rose 0.5 percent. The U.S. index is 10.3 percent below its April 2007 peak.
The FHFA monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. For the nine Census Divisions, seasonally adjusted monthly price changes from October to November ranged from –0.4 percent in the East South Central Division to + 2.3 percent in the Pacific Division.
This report pulls from too small a sample to be of any real significance. Whose home prices are only down 10%?
The Median house price is up. This means nothing as the high-end inventory begins to foreclose. Even at huge discounts the high end brings up the median price. When this portion of the market goes, so will the rest.