The small number of homes for sale has pushed home prices up 3% in the past yeꩵar, according to a report released Tuesday.

U.S. home prices rose 3% between the second quarters of 2022 and 2023, according to the Federal Housing Finance Agency House Price Index (FHFA HPI). House prices were up 1.7% compared with the first quarter of 2023. FHFA’s seasonally adjusted monthly index for June was up 0.3% in May.

Nationally, the year-over-year price of housing has grown over the past five quarters. The Federal Housing Finance Agency has reported a positive annual appreciation of the U.S. housing market since the start of 2012, and the FHFA HPI peaked in the first quarter of 2022, hitting 18.7%.

Tight Inventory Pushes Prices Up

Nearly two-thirds of homeowners have a mortgage rate under 4%, keeping many of them in their current homes to avoid 澳洲幸运5官方开奖结果体彩网:doubling their interest rates. That's resulted in a record♊-low amount of homes on the market, ✅pushing the prices for those that are available up.

"The key to recent upward pressure on house prices is the limited supply of inventories," wrote Moody's Analytics Economist Shannon Brobst in an analysis. "The months supply of existing homes for sale is just over three months, which is half that of a healthy and balanced market."

Brobst forecasted a small correction in the market but expects home prices 🍎to remai🌳n well above their pre-pandemic levels.

Maine and Eas🍃t North Central Region Shows Highest Appreciation

Seventy-four of the top 100 metropolitan areas saw house prices rise over the l♛ast four quarters. Camden, NJ, had the greatest annual price increase at 10.6%, while San Francisco-San Mateo-Redwood City, CA, had the largest decline, falling 12.2%.

House prices rose in 42 states between the second quarters of 2022 and 2023. Five of the most appreciated areas were in Maine, Connecticut, New Hampshire, Arkansas, and New Jersey, with annual appreciation rates of 7.6%, 7.6%, 7.1%, and 6.9%, respectively.

All census divisions showed an increase in the second quarter of 2023, with the East North Central division recording the strongest four-quarter appreciation of all seven census divisions, at a 5.4% increase between the second quarters of 2022 and 2023.

Annually, house prices declined in eight states and the DC area, all located in the Pacific and Mountain divisions, with Mountain division house prices falling 2.1% and Pacific division house prices falling 2.0%.