Home prices have been on an upward path for the last few years, but 12 states broke the trend and experienced home price depreciation in the first quarter.
The report noted that this will mark the nineteenth consecutive quarterly price increase in the purchase-only, seasonally adjusted index and the fourth consecutive year in which prices grew more than 5 percent.
"While the overall appreciation rate was robust in the first quarter, home price appreciation was somewhat less widespread than in recent quarters," said FHFA Supervisory Economist Andrew Leventis. "Twelve states and the District of Columbia saw price declines in the quarter—the most areas to see price depreciation since the fourth quarter of 2013. Although most declines were modest, such declines are notable given the pervasive and extraordinary appreciation we have been observing for many years."
While the purchase-only HPI rose 5.7 percent from the first quarter of 2015 to the first quarter of 2016, prices of other goods and services were nearly unchanged. The inflation-adjusted price of homes rose approximately 5.6 percent over the latest year, the FHFA reported.
Home prices rose in every state between the first quarter of 2015 and the first quarter of 2016. The top five states in annual appreciation were: Oregon (11.8 percent); Florida (11.2 percent); Washington (10.9 percent); Nevada 9.4 percent; and Colorado (9.0 percent).
12 States and the District of Columbia that experienced home price declines:
- West Virginia -5.26 percent
- District of Columbia -4.11 percent
- Wyoming -1.46 percent
- Oklahoma -1.18 percent
- Vermont -1.10 percent
- Arkansas -0.28 percent
- Hawaii -0.22 percent
- Rhode Island -0.13 percent
- Alaska -0.11 percent
- Kentucky -0.07 percent
- New Jersey -0.04 percent
- Kansas -0.04 percent
- Idaho -0.04 percent