Uncategorized December 10, 2022

Q3 2022 FHFA HPI Updates

FHFA released their numbers for their House Price Index for the Third Quarter of 2022 and there were many interesting nuggets.

U.S. house prices rose 12.4 percent from the third quarter of 2021 to the third quarter of 2022 according to the Federal Housing Finance Agency House Price Index (FHFA HPI®). House prices were up 0.1 percent compared to the second quarter of 2022. FHFA’s seasonally adjusted monthly index for September was up 0.1 percent from August.

“House prices were flat for the third quarter but continued to remain above levels from a year ago.” said William Doerner, Ph.D., Supervisory Economist in FHFA’s Division of Research and Statistics. “The rate of U.S. house price growth has substantially decelerated. This deceleration is widespread with about one-third of all states and metropolitan statistical areas registering annual growth below10 percent.”

Significant Findings

  • Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.
  • House prices rose in all 50 states and the District of Columbia between the third quarters of 2021 and 2022. The five areas with the highest annual appreciation were: 1) Florida 22.7 percent; 2) South Carolina 18.4 percent; 3) Tennessee 17.9 percent; 4) North Carolina 17.4 percent; and 5) Georgia 16.7 percent. The areas showing the lowest annual appreciation were: 1) District of Columbia 1.8 percent; 2) Oregon 7.6 percent; 3) California 7.6 percent; 4) Minnesota 7.7 percent and 5) Louisiana 8.3 percent.
  • House prices rose in all but two of the top 100 largest metropolitan areas over the last four quarters. Annual price increase was greatest in North Port-SarasotaBradenton, FL, where price increased by 29.2 percent. Two metropolitan areas that experienced price declines are San Francisco-San Mateo-Redwood City, CA and Oakland-Berkeley-Livermore, CA, where prices decreased by 4.3 percent and 0.6 percent, respectively.
  • Of the nine census divisions, the South Atlantic division recorded the strongest fourquarter appreciation, posting a 17.0 percent gain between the third quarters of 2021 and 2022. Annual house price appreciation was weakest in the Pacific division, where prices rose by 8.3 percent between the third quarters of 2021 and 2022.

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, now 4th in the nation behind Austin, TX, Missoula, MT and Salt Lake City, UT. Interesting University towns seem to rise consistently to the top for appreciation.

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. Q3 data finally showing the market change we’ve all felt.

The national map, color coded by appreciation over the preceding 12 months.

Be healthy everyone and finish 2022 strong!