More than half of U.S. home mortgages are backed by Fannie Mae and Freddie Mac. Therefore, periodically the Federal Housing Finance Agency releases their House Price Index (FHFA HPI). This index tracks 100 cities to monitor home prices and it is based on mortgages in these areas. Overall U.S. house prices rose 17.7% year-to-year in the second quarter (4.0% quarter-to-quarter), but no Florida metro area had an increase less than 26%.
Florida metros in the top 100 & year-over-year price increases
1. North Port-Sarasota-Bradenton: 36.5%
2. Cape Coral-Fort Myers: 36.0%
4. Tampa-St. Petersburg-Clearwater: 29.6%
5. Jacksonville: 29.0%
8. Fort Lauderdale-Pompano Beach-Sunrise: 26.9%
9. West Palm Beach-Boa Raton-Boynton Beach: 26.4%
10. Orlando-Kissimmee-Sanford: 26.3%
11. Miami-Miami Beach-Kendall: 26.1%
House price rose in all 50 states and the District of Columbia year-over-year. The five states with the highest annual price appreciation were:
- 1. Florida: 29.8%
- 2. Arizona: 25.5%
- 3. North Carolina: 25.2%
- 4. Montana: 24.9%
- 5. Tennessee: 24.3%
Summary
The U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012. With this said, it is important to note that we began to see a deceleration in home prices as of June. Furthermore, a further deceleration is expected for the months of July, August, & beyond. In the recent months we have seen more homes on the market decrease their prices as mortgage rates rose. Depending on which market you are in, it is not unreasonable to expect a slight price correction in some areas.
Are you looking to buy or sell property in South Florida? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Be sure to also download the free Florida Home Search App as well.
