WASHINGTON (11/30/11)--U.S. home prices increased by 0.2% between the second and third quarters of 2011, reversing a trend that saw home prices fall over the past five quarters, the Federal Housing Finance Agency (FHFA) reported.
The 0.2% increase is based on the FHFAs seasonally adjusted purchase-only house price index (HPI), which the FHFA said is calculated from home sales price information from Fannie Mae- and Freddie Mac-acquired mortgages.
FHFA Principal Economist Andrew Leventis said third-quarter home values were relatively stable in many parts of the county, "even in some areas that experienced sharp price declines in preceding quarters." Leventis added: "While most housing markets still face stiff headwinds, the fact that some beleaguered states—such as Idaho, Florida and Utah—saw quarterly price increases is a positive development."
Home prices increased by 0.7%, on an adjusted basis, during the quarter, but seasonally adjusted home prices fell 3.7 percent from the third quarter of 2010 to the third quarter of 2011, the FHFA said.
Home prices increased by 4% in the Warren-Troy-Farmington Hills, Michigan, metropolitan area during the quarter. The FHFA added that home prices were more stable in States and counties with significant mining and oil extraction industries. Home prices in the West North Central census division, which includes Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota, increased by 1.5% during the quarter, the FHFA said.
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