RATE OF HOUSE PRICE DECLINES SLOWS IN SECOND QUARTER
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RATE OF HOUSE PRICE DECLINES SLOWS IN
SECOND QUARTER
WASHINGTON, DC – U.S. home prices fell in the second quarter of 2008
according to OFHEO’s seasonally-adjusted purchase-only house price index.
The index, which is based on data from home sales, was 1.4 percent lower on
a seasonally-adjusted basis in the second quarter than in the first quarter.
This decline was less steep than the 1.7 percent decline in the prior quarter.
Over the past year, prices fell 4.8 percent between the second quarter of 2007
and the second quarter of 2008. The decline is the largest in the purchase-only
index’s 17-year history, but is much smaller than those of other indexes.
OFHEO’s all-transactions House Price Index (HPI) fell 1.4 percent in the
latest quarter and was down 1.7 percent over the four-quarter period.
The figures were released today by OFHEO Director James B. Lockhart, as part
of the quarterly report analyzing housing price appreciation trends.
“Tighter credit conditions and relatively high inventory levels led to some sharp
price declines in the second quarter,” said Lockhart. “However, the majority of
Metropolitan Statistical Areas (MSAs) posted positive four-quarter growth.”
The monthly index, which is a purchase-only measure of price changes, was
flat between May and June on a seasonally-adjusted basis, but was down 5.0
percent since the April 2007 peak. In June, seasonally-adjusted prices in the
Pacific Census Division were 17.6 percent off their early 2007 peak, making it
the worst performing Division. By contrast, June prices in the West South
Central Division reached a new high.
While the national purchase-only house price index fell 4.8 percent between
the second quarters of 2007 and 2008, prices of other goods and services
increased 5.3 percent. Accordingly, the inflation-adjusted price of homes fell
approximately 10.1 percent over the latest year.
