WASHINGTON (5/27/15)--Three housing market indicators released Tuesday found that home prices climbed roughly 5% on an annual basis in March.
The Federal Housing Finance Agency’s purchase-only house price index climbed 1.3% in the first quarter, and rose exactly 5% on a year-over-year basis (Economy.com May 26).
Seven of nine census divisions posted month-over-month increases, with only the West South Central and New England divisions recording declines. All divisions posted annual gains, however.
“The housing recovery is slowing, but the fundamental demand drivers for the housing market have been improving in recent months,” said Thomas McCartin, Moody’s analyst (Economy.com). “The job market is tightening at a rapid pace and wage growth will soon pick up, providing support to housing demand and prices.”
For existing homes, price growth slowed during the three months ending in March--compared with the three months ending in February--but on an annual basis existing-home prices climbed 4.7%, according to the S&P/Case-Shiller Home Price Indexes (Economy.com).
All 20 metro areas covered by the indexes recorded price gains both in March and on a year-over-year basis, with San Francisco leading all metros at a 10.3% annual gain.
New-home price growth also continues to accelerate, with the not seasonally adjusted median new-home price climbing 8.3% to $297,300, according to the Census Bureau.
And the rising prices did not stunt home buying, as new-home sales in April rose 6.8% to 517,000, or a 26.1% year-over-year increase.