Home Prices Up — But Not Evenly
April 23rd, 2008
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The Office of Federal Housing Enterprise Oversight reports that “U.S. home prices rose approximately 0.6 percent on a seasonally-adjusted basis between January and February, according to OFHEO’s new monthly House Price Index. For the 12 months ending in February, U.S. prices fell 2.4 percent. Since its peak in April 2007, the index is down 3.1 percent.”
However, a careful look at the numbers from OFHEO — the government agency that overs Fannie Mae and Freddie Mac — shows there are significant differences in regional housing markets.
Between January and February, for example:
Home prices were up in the Pacific region (.3%), West North Central (1.3 percent), West South Center (.7 percent), East North Center (1.2%), New England (2.2%) and the Middle Atlantic (.1 percent). Prices fell in the Mountain region (-.6 percent) and the South Atlantic area (-.2 percent).
This is very good news, not because the numbers show huge price increase but because prices at least held in most areas. For those looking for a sign, any sign, of good news this is about as good as it has been in recent months.
Alternatively, if we compare the numbers from February 2007 through February 2008, the picture is different. There were price gains only in the West Central South area (2.3%) and the East South Central region (.6 percent) while the Middle Atlantic showed no change. On the down size we have the Pacific region (-9.2 percent), Mountain (-2.4 percent), West North Central (-1.5 percent), East North Central (-2.3 percent), New England (-1.3 percent) and South Atlantic (-3.7 percent)
These numbers are important to reverse mortgage borrowers because higher prices mean more equity and thus an ability obtain larger loan packages.
As always, for specifics speak with a reverse mortgage lender in your community.
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