Over the weeks we have talked all about interest rates, reasons to buy now, the mythical new housing bubble, and more. Today let’s take a look back at what year-over-year price increases have looked like regionally across the U.S. since 2012.
Here is a chart from the Federal Housing Finance Agency’s (FHFA) most recent quarterly report. Take a look:
The graphic shows the whole country broken down by regions. The lighter in color the region is, the lower percentage increase it had over the last year. Also, in the lighter regions, inventory (the number of homes available to purchase) was higher (So, the lower the percentage, the higher the inventory). The darker green regions had a higher percentage increase (and in some cases, double digits), and had lower levels of inventory.
The Mid-Atlantic region showed the lowest percentage increase across the country with 2.46% followed by the East South Central region with 3.46%. The highest percentages were in the Pacific region with 16.23% followed by the Mountain region with 12.52%. We are going to discuss the reasons for the differences between increases and inventory levels during the week, but do note that all of the regions were green. This was not always the case as you can see below:
This chart, also from the FHFA’s most recent quarterly report, shows price increases over the last four quarters. You can see that back in the third quarter of 2012, the Mid-Atlantic and New England regions were red with -0.31% and -0.14% increases, respectively. As the quarters went on, more of the regions saw positive price increases, and now we are all green.
Things are looking good. Recent research has shown that people of all age groups are venturing back into the market. Despite the terrible housing crisis that we endured, people see that owning a home creates wealth. They want to have a place of their own. They want a better life for their families. Things have turned around and people are ready to buy (or sell) again.