For the last 12 months ending in May, U.S. home prices have increased 3.7 percent, according to the Federal Housing Finance Agency’s latest House Price Index. Home prices increased 0.8 percent from April to May on a seasonally adjusted basis, according to the index, which uses purchase prices of houses with mortgages that have been sold or guaranteed by Fannie Mae or Freddie Mac.
While prices are picking up, they still may have a long way to go in some markets. Home prices are about 17 percent below the peak reached in April 2007, according to the FHFA index. Prices are at about the same level they were at in May 2004, according to the index.
Still, other industry reports out recently are also showing an increasing in home prices.
The National Association of REALTORS® recently reported that median existing-home prices were up 7.9 percent in June from a year ago. In fact, existing-home prices in June posted their strongest gain since February 2006 and for the last four consecutive months have posted increases. NAR attributed most of the price gains to the fact that there were fewer distressedhomes for sale in June.