After 40 consecutive quarters of annual growth, property prices across the country rose to their highest level since the Federal Housing Finance Agency began monitoring in 1991.
According to the agency's property price index, single-family home values rose 17.42% annually in the second quarter, 4.92% quarterly, and 1.6% in June compared to May. In addition, total price growth was 47.66% and 232.71% over the past five and 30 years, respectively.
Broken down by the nine census divisions and the 100 largest metropolitan areas, annual increases in the Mountain, New England and Pacific regions and the top 20 cities exceeded the record quarter average growth to over 20%, FHFA Assistant Director of Research and Statistics said Lynn Fisher in the report.
The mountainous region – Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming – led the country with the highest price growth in each analyzed time frame. HPI scores in the region have increased 6.82% quarterly since the first quarter of 1991, 22.91% annually, 66.42% and 383%, respectively, for five years. In addition, the country's annual gains rose for 15 consecutive quarters. New England – Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont – grew 5.59% quarterly, 20.37% annually, 46.81% from five years ago, and 213.22% since the first quarter of 1991. The Pacific Division – Alaska, California, Hawaii, Oregon, and Washington – followed up with gains of 5.95%, 20.13%, 54.75%, and 296.71%.
Meanwhile, West North Central – Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota – saw the lowest appreciation at 4.29%, 14.9%, 42.13% and 222.22%, respectively. The region closed just above West South Central – Arkansas, Louisiana, Oklahoma, Texas – with gains of 4.42%, 14.98%, 40.48% and 239.35%.
The extremely short supply of homes for sale continues to drive prices up. If the typical seasonal decline in prices continues from summer to fall, price growth could stay the same, according to Bill Dallas, president of Finance of America Mortgage.
"Housing stock is declining in almost all major markets, with some cities seeing active stock declines by more than 40% compared to the same month last year," Dallas said in a statement.
"The strength of the housing market far outweighs any slowdown that might result from the end of the foreclosure moratorium or the end of the eviction ban, and any new inventory is likely to be eaten up by those already in the home market," he wrote.
At the state level, Idaho led the way with a 37.06% jump from the second quarter of 2020. 28.26% in Utah, 23.91% in Arizona, 23.73% in Montana and 23.66% in Rhode Island rounded out the top 5. On the flip side, Alaska had the lowest annual profit of 8.17%, followed by 8.66% in North Dakota, 9.57% in Louisiana, 11.43% in Mississippi, and 11.54% in Iowa.
Boise, Idaho, topped the list of subways, a year-on-year change of 41.11% for the second quarter. Austin, Texas came in second at 35.15%, followed by 26.18% in Salt Lake City, 25.5% in Cape Coral, Florida, and 24.6% in Stockton, California. Only three of the top 100 metros had single-digit years with 4,555 in San Francisco, 8.9% in Baton Rouge, La. and 8.93% in Houston.