House prices in the U.S. continue steadily rising, with the S&P Case-Shiller index up 5.8% year over year in March. The FHFA’s index, which is derived from transactions involving conforming conventional mortgages purchased or securitized by Fannie Mae or Freddie Mac, has increased 6.3%.
Sales prices of previously lived in homes reflect a similar trend, while new home sales prices are often too volatile to offer a reliable signal.
All 20 of the major U.S. cities tracked by the Case-Shiller index have experienced year over year gains in house prices. The total National index is now 2.4% higher than it’s pre-crisis peak while the 20-City Composite index has not yet fully recovered.
Looking at each city individually, we can see where housing excess was most prevalent leading up to the financial crisis.
While all 20 cities tracked in the Case-Shiller index have seen gains, prices in New York City are up only 4.1% from a year ago.
The FHFA tracks house prices by region rather than city and offers an alternative perspective. Their index shows house prices having increased the most year over year in the Pacific region.
The Pacific experienced pre-crisis housing growth unlike any other region.