May home prices roughly equal to April 2006
Posted on Sunday, July 26, 2015 at 7:34:48 PM
Nationwide home values are rising, with prices in May nearly matching those of 2007, just before they fell at the start of the housing crisis.
The Federal Housing Finance Agency Home Price Index hit 222.8 in May 2015, the highest it has been since June 2007. The index is a gauge of variations in a "home's value between subsequent sales," according to The Mortgage Reports. It is benchmarked to a value of 100, meant to depict the housing market in 1991.
The housing crisis had just begun in June 2007, and home prices were still at normal levels in many markets. In fact, the index is 1.8 percent lower than its March 2007 peak, and close to where it was in April 2006. With demand for residential financing rising and the housing market recovery moving at a healthy rate, it seems prices are following suit.
For all nine census divisions, the 12-month changes were positive. Monthly price variations in the divisions ranged from -0.6 percent in the East South Central division to 1.1 percent in the East North Central division, according to Housing Wire.
Also, relative to peak valuations, divisional price indices varied. The index is 11 percent higher in the West South Central region and 12.7 percent lower in the Pacific region.