To estimate the variation in the price of housing at various geographic levels, national, census division, state and Metropolitan Statistical Areas, among others, the Federal Housing Finance Agency (FHFA) calculates on a quarterly and monthly basis a House Price Index (HPI) . The index measures changes in single-family home values based on data collected from all 50 states since the mid-1970s. The fluctuations presented in this article are based on seasonally adjusted and purchase-only data.
According to FHFA HPI house prices rose nationwide 1.4% from April to May 2022 and increased 18.3% compared to May 2021. As for the nationwide statistic, the index for the South-Atlantic Census Division is published every month. Since it covers only the states located in the South East of the country including Virginia, we have a better insight of the movement in the house price for our area. For the South-Atlantic area the value of properties appreciated up to 1.9% in May compare to April 2022 and up to 23.8% between May 2021 and May 2022.
What is more interesting for us is the variations observed at the state level (Virginia) and the Washington/Arlington/Alexandria Metropolitan Statistical Area which are calculated only quarterly.
For the state of Virginia, the first quarter of 2022 versus the fourth quarter of 2021 the prices increased 4.2% and 15.1% compared to the first quarter of 2021.
Concerning the Washington/Arlington/Alexandria area, the prices of dwellings went up 4.6% from the fourth quarter of 2021 to the first quarter of 2022 and raised up 10.8% between the first quarters of 2021 and 2022.
According to Well Doever PhD (1) “House prices continue to rise in May but at a lower pace. …The increases are above historical levels supported by the low inventory of properties for sale”.
(1) Supervisary Economist in FHFA’s Division of Research and statistics.
(This blog has been written by Nicole and Bob Hamilton)
Source of the information: FHFA
(Print Cameron Street, Old Town Alexandria, Virginia by Anna Rolen)