Home prices showed modest gains in 2006But year-over-year price increases of 5.9% were the lowest recorded since 1999.NEW YORK (CNNMoney.com) -- Housing prices continued to fall in some housing markets around the nation, according to a government agency report covering price changes during the fourth quarter of 2006, but overall showed modest growth. Nationally, home prices rose 5.9 percent, compared to the fourth quarter of 2005, reported the Office of Federal Housing Enterprise Oversight (OFHEO), and 1.1 percent from the third quarter of 2006. Year-over-year price increases were the lowest recorded since 1999. "House price appreciation is, for now, more in line with historical norms," OFHEO director James Lockhart said in a statement. The release contrasted with a report earlier in February from the National Association of Realtors (NAR). That reported a 2.7 percent year-over-year decline in median prices of homes sold during the fourth quarter of 2006, rather than just a slowdown in appreciation rates. Many experts consider the OFHEO index a more accurate indicator of the direction of housing prices because it measures repeat sales - the price of a house sold during the reporting period is compared to what it fetched the last time it was sold. NAR reports prices for all homes sold. Some hot markets bucked the national trend of modest price gains. These were led by Bend, Oregon, which recorded the largest year-over-year increase in the nation, 21.4 percent. Other winners included Wenatchee, Washington (20.9 percent for the year) and Provo, Utah (19.9 percent). Enduring the worst declines during the 12 months ended December 31 were Kokomo, Indiana, where prices plunged 5.3 percent, Santa Barbara, California (4.2 percent) and Jackson, Michigan (3.9 percent). Western states fared best during 2006 with Utah (17.6 percent) recording the largest gain. Michigan, where prices fell 0.4 percent, was the only state reporting a net loss. Home building industry members, such as Toll Brothers (Charts), Lennar (Charts), Pulte Brothers (Charts), D.R. Horton (Charts) and Centex (Charts), have all reported lower earnings and reduced home starts. |
|
