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FHFA released their numbers for their House Price Index for the Third Quarter of 2021 and there were many interesting nuggets.
From the most recent HPI report: U.S. house prices rose 18.5 percent from the third quarter of 2020 to the third quarter of 2021 according to the Federal Housing Finance Agency House Price Index (FHFA HPI®). House prices were up 4.2 percent compared to the second quarter of 2021. FHFA’s seasonally adjusted monthly index for September was up 0.9 percent from August.
“House price appreciation reached its highest historical level in the quarterly series,” said William Doerner, Ph.D., Supervisory Economist in FHFA’s Division of Research and Statistics. “Compared to a year ago, annual gains have increased in every state and metro area. Real estate prices have risen exceptionally fast, but market momentum peaked in July as month-over-month gains have moderated.”
Significant Findings
- Housing markets have experienced positive annual appreciation since the start of 2012.
- House prices rose in all 50 states and the District of Columbia between the third quarters of 2020 and 2021. The five states with the highest annual appreciation: 1) Idaho 35.8 percent; 2) Utah 30.3 percent; 3) Arizona 27.7 percent; 4) Montana 26.0 percent; and 5) Florida 24.8 percent. The areas showing the lowest annual appreciation: 1) District of Columbia 8.0 percent; 2) North Dakota 10.5 percent; 3) Louisiana 10.9 percent; 4) Maryland 12.5 percent; and 5) Iowa 13.0 percent.
- House prices rose in all of the top 100 largest metropolitan areas over the last four quarters. Annual price increases were greatest in Boise City, ID, where prices increased by 37.3 percent. Prices were weakest in Philadelphia, PA (MSAD), where they increased by 9.9 percent.
- Of the nine census divisions, the Mountain division recorded the strongest four quarter appreciation, posting a 25.0 percent gain between the third quarters of 2020 and 2021 and a 5.8 percent increase in the third quarter of 2021. Annual house price appreciation was weakest in the West North Central division, where prices rose by 14.8 percent between the third quarters of 2020 and 2021.
Trends in the Top 100 Metropolitan Statistical Areas are available in our interactive dashboard: https://www.fhfa.gov/DataTools/Tools/Pages/FHFA-HPI-Top-100-Metro-Area-Rankings.aspx. The first tab displays rankings while the second tab offers charts.
Here’s a look at how these numbers played out for the MSA’s in Colorado compared to the 257 other MSA’s across the country and how Colorado compared to the other states plus the District of Columbia. Boulder County has lost its top dog spot for annual appreciation since 1991 a couple of reports ago and continues to fall. Interestingly, Boulder County has reversed the trend of being out-performed by the Metro Denver MSA but is now being beaten by the MSAs in S. Colorado.
Here is a graph comparing the annual appreciation rates for the Boulder MSA (all of Boulder County), the Denver MSA (the City and County of Denver, Arapahoe County, Jefferson County, Adams County, Douglas County, the City and County of Broomfield, Elbert County, Park County, Clear Creek County, and Gilpin County) and the US. Quite the spike in the last two quarters of data!
The national map, color coded by appreciation over the preceding 12 months.
Be healthy everyone and finish 2021 strong!
