Within a year, from April 2014 to April 2015, house prices went up by 5.3% as reported by Realtor through the Federal Housing Finance Agency bumping the house price index up at .3% for two consecutive months. The positive change is felt more in the Mid-Atlantic division at +2.3% and the Pacific area (Hawaii, Alaska, Washington, Oregon and California) at +7.5%. According to an economist, the rate increase is higher than what would be considered normal, because of the high demand and limited supply.
According to the Federal Agency website FHFA.gov, the .3% increase in the prices are on an occasional adjusted basis from the previous month, and it has not move since March. FHFA calculated the HPI by using the home sales price information from mortgages sold to or guaranteed. The nine census division also said that the seasonal adjustment monthly price changes from March to April of this year have ranged from .8% to 1.4% and the 12 month changes were all positive.
The federal agency is geared towards to work in strengthening and securing the US secondary mortgage markets through effective supervision, sound research, reliable data, and relevant policies. The agency is an independent agency which is responsible for overseeing the vital component of the secondary mortgage markets.
Another good thing about this news for home buyers is that this surge is not at its peak, yet. Surprisingly, the index is still 2.3% below the March 2007 peak and the current number is the same as what it was back in February of 2006.
To add, despite this increase in indexes, on the other hand, prices of houses in the East North Central division (Michigan, Wisconsin, Illinois, Indiana and Ohio) actually went down at .8% and rose only at 1.4% in the West North Central division (North Dakota, South Dakota, Minnesota, Nebraska, Iowa, Kansas and Missouri).
