Low inventory drives U.S. home prices up 5.5% year over year in Q3: FHFA

U.S. house prices surged in Q3 2023, rising 2.1% quarterly and 5.5% annually, marking the strongest growth in a year. Anju Vajja of the FHFA highlighted the acceleration, attributing it to a shortage of available homes. Almost all states saw year-over-year increases, with Vermont, Maine, and New Hampshire leading. However, Hawaii and D.C. experienced slight declines.

Metropolitan areas mostly witnessed growth, with Albany, New York, boasting a remarkable 12.4% appreciation, while Austin, Texas, saw a 5.0% decline. New England led the census divisions with a 9.2% rise, while the Pacific division lagged at 2.0%.

Looking ahead to Q4, experts predict a slowdown due to high mortgage rates and a seasonal dip in buyer activity. Bright MLS’s Lisa Sturtevant anticipates fewer buyers, and CoreLogic’s Selma Hepp emphasizes the impact of high mortgage rates on slowing price growth in the coming months.

3.U.S. house prices soared in Q3 2023, rising 2.1% quarter over quarter and 5.5% year over year, marking the fastest growth in five quarters. Anju Vajja from the FHFA attributes this surge to a shortage of homes for sale. Across states, Vermont, Maine, and New Hampshire led with impressive annual appreciation rates. However, Hawaii and the District of Columbia faced depreciation.

Metropolitan areas experienced widespread growth, with Albany topping the charts at +12.4%. Yet, Austin saw a notable decline of -5.0%. New England led in regional appreciation at 9.2%, while the Pacific division lagged at 2.0%. Looking ahead, experts predict a slowdown in Q4 due to high mortgage rates and a seasonal dip in buyer activity. Despite a surge in new listings, the housing market braces for a moderation in price growth.