The second-quarter results of home price growth are in and found that growth last quarter grew at near-record level highs again, putting further financial pressure on homeseekers.
This information comes by way of Fannie Mae’s [1] Home Price Index [2], which measures the average quarterly price change for all single-family properties in the country (excluding condominiums).
All-in-all, single-family home prices increase at an annualized rate of 19.4% in the second quarter of 2022, down from the first quarter’s 20.5% annualized rate. On a quarterly basis, seasonally adjusted home prices rose by 4.3% in the second quarter.
"Home prices maintained a near-historic pace of appreciation in the second quarter, as low levels of housing inventory continued to support price growth," said Doug Duncan, Fannie Mae SVP and Chief Economist. "At the end of 2021 and extending into 2022, we believe many homebuyers pulled forward their purchase plans to avoid expected increases in mortgage rates, contributing to demand for homes and strong price appreciation. Given the sharp rise in mortgage rates since that time, and the resulting negative impact on affordability to potential homebuyers, we expect purchase demand to cool in the quarters ahead, and for home price appreciation to moderate as a result."
The HPI is produced by aggregating county-level data to create both seasonally adjusted and non-seasonally adjusted national indices that are representative of the whole country and designed to serve as indicators of general single-family home price trends. The HPI is publicly available at the national level as a quarterly series with a start date of Q1 1975 and extending to the most recent quarter, Q2 2022. Fannie Mae publishes the HPI approximately mid-month during the first month of each new quarter.