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Home prices are still climbing higher, even though the season change has caused things to slow down quite a bit in the housing market.
The Federal Housing Finance Agency (FHFA) reported Tuesday in their House Price Index (HPI) that home prices in the U.S. increased 0.5 percent from September to October on a seasonally adjusted basis.
The FHFA also reported that the 0.8 percent increase originally recorded in September was revised downward to a 0.7 percent increase.
The data, which is taken from home sales price information from mortgage sold to, or guaranteed by, Fannie Mae and Freddie Mac, found that home prices are up 6.1 percent year-over-year in October.
For the nine census divisions, home prices in the New England division came in at negative 0.5 percent on a seasonally adjusted basis in October, while home prices in the East South Central division were up 1.2 percent.
All yearly changes were positive in the census divisions, the FHFA said. In the New England division, home prices rose 2.9 percent, while in the Mountain division, home price were up 8.9 percent.
Earlier this month, CoreLogic's Home Price Index (HPI) report for October 2015 showed that home prices continued to keep their rising pace in October 2015 with the help of declining housing supply and increasing consumer demand.
According to CoreLogic, home prices are were 6.8 percent year-over-year and 1.0 percent month-over-month in October. Last month, home prices were up 6.4 percent year-over-year and 0.6 percent month-over-month.
“Many markets have experienced a low inventory of homes for sale along with strong buyer demand, which is sustaining upward pressure on home prices. These conditions are likely to persist as we enter 2016,” said Dr. Frank Nothaft, chief economist for CoreLogic.
“The rise in home prices over the past few years has largely been a healthy trend. The shadow inventory has been reduced significantly and home equity levels are now approaching pre-recession levels,” said Anand Nallathambi, president and CEO of CoreLogic. “As we move forward, the rise in home prices will need to be better correlated to family income trends over time to avoid homes becoming unaffordable for many. This is especially true in several metropolitan areas where home prices have grown rapidly.”
