At last there is a bit more good news in the housing market.
Freddie Mac announced Tuesday that its Conventional Mortgage Home Price Index (CMHPI) registered a 0.9 percent quarterly gain during the third quarter 2009, for the U.S. This followed an upward revised 2.0 percent increase in the second quarter and marking the second consecutive quarter of price increase.
The increases of the second and third quarter erased about two-fifths of the declines registered during the last quarter of 2008 and the first quarter of 2009; over the year ending with the third quarter of 2009, U.S. home sales prices were down 3.9 percent in the CMHPI Purchase-Only Series.
“The home-price gains of the past two quarters reflect improving existing home sales over that period. Sales volume was up 15 percent between the first and third quarters of this year,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“The lowest average fixed-rate mortgage rates in a half century, lower house prices, incentives to encourage first-time buyers, and loan modification efforts to stem foreclosures have worked together to support sales and reduce the inventory of unsold homes. Moreover, the price gains were broad-based with increases in seven of nine regions during the third quarter and all nine regions up from their first quarter values”, said Nothaft.
“Prices are still down relative to their peaks in most markets. For example, as measured by the CMHPI, values in the New England, East North Central and Pacific divisions are at 2004 levels, on average, and the South Atlantic, West North Central, and Mountain states’ home values are at 2005 levels. In contrast, average values in the West South Central area have tied their previous peak from the third quarter of 2008, while average home values in the Middle Atlantic and East South Central states have reached 2006 and 2007 levels, respectively. ”
Source: freddiemac.com
