U.S. housing prices dipped into negative territory in the third quarter for
the first time in 13 years, according to the Office of Federal Housing Enterprise Oversight. Of the 287 metro areas, 147 recorded decreases in house prices
during the quarter, the OFHEO reported today. More than 80 recorded year- over-year decreases in prices. But over a five year period, only one metro
area --Detroit--shows a decrease in prices. Nationwide, prices were down 0.4% compared with the second quarter,
the OFHEO said, and up 1.8% from the third quarter 2006--exactly the rate
of inflation over the past year. The OFHEO data is gathered from a the wider sampling than most other
gauges of housing activity and focuses on properties financed with 30-year
conventional home loans.
Findings of the report include:
< Florida, California and Michigan are bearing the brunt of the current declines.
All of the 20 worst-performing markets over the past year are in those states.
Prices in the Merced, Calif., area have fallen 13% over the past four quarters,
worst of any metro area.
< Prices are still rising in many areas. Texas, North Carolina, Washington and
Utah put four cities from each state making the 20 best-performers list. <City rankings are listed by metropolitan areas. The OFHEO's House Price Index
is published on a quarterly basis and tracks average house-price changes
in repeat sales or refinancings of the same single-family properties. The
index is based on analysis of data obtained from Fannie Mae and Freddie
Mac from more than 30 million repeat transactions over the past
30 years.
