Magazine article Mortgage Banking

Average U.S. Home Worth Nearly 13 Percent More in 2005

Magazine article Mortgage Banking

Average U.S. Home Worth Nearly 13 Percent More in 2005

Article excerpt

Average U.S. home prices increased nearly 13 percent for all of 2005, while home-price appreciation for the fourth quarter of 2005 was about 2.9 percent, or an annualized rate of 11.4 percent, according to the Office of Federal Housing Enterprise Oversight (OFHEO).

OFHEO's quarterly House Price Index (HPI) noted that house prices continued to grow considerably faster over the past year than did prices on non-housing goods and services, as reflected in the Consumer Price Index (CPI). House prices rose 12.95 percent, while prices of other goods and services rose just 4.3 percent.

The HPI, which tracks average house-price changes in repeat sales or refinancings of the same single-family properties, indicated no sign of a price slowdown, as appreciation during 2005 continued to hover at near-record levels, said OFHEO Chief Economist Patrick Lawler.

"While deceleration continues in some areas, appreciation generally is still extremely strong," said Lawler. "Mortgage rates climbed significantly during the second half of last year, but the effect of that increase on price appreciation so far appears to be limited."

Fourth-quarter appreciation rates were at record levels in 26 metropolitan areas, including Orlando-Kissimmee, Florida; El Paso, Texas; and Myrtle Beach-Conway-North Myrtle Beach, South Carolina.

Appreciation in Arizona during the fourth quarter continued to surpass price growth in other parts of the country by a wide margin, with a one-year appreciation rate of 34.9 percent. This was more than eight percentage points greater than the rate in Florida, the second-fastest-appreciating state, said OFHEO.

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Meanwhile, the National Association of Realtors[R] (NAR), Chicago, noted in its own survey that the national median existing single-family home price was $213,000 in the fourth quarter of 2005, up 13. …

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