U.S. Home Prices Fall 0.8% From March To April

U.S. home prices fell 0.8 percent on a seasonally-adjusted basis from March to April, according to OFHEO’s monthly House Price Index. For the 12 months ending in April, U.S. prices fell 4.6 percent. As April 2007 was the peak of the monthly HPI, 4.6 percent is also the total fall from the peak.

For the nine Census Divisions, seasonally-adjusted monthly price changes from March to April ranged from -2.0 percent in the Pacific Census Division (which includes Alaska, Hawaii, Washington, Oregon and California) to 0.9 percent in the East South Central Division (which includes Kentucky, Tennessee, Mississippi and Alabama).

“Due to the broader geographic reach and narrower range of financing types than other house price indexes, the HPI’s fall has been comparatively muted,” said OFHEO Director James B. Lockhart. “However, on a 12-month basis, there have been large geographic differences, from -15.0 percent in the Pacific to small increases in the West South Central (1.9 percent) and East South Central (0.1 percent). House prices on a nationwide basis have retreated to their December 2005 levels.”

The OFHEO monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. The index, introduced in OFHEO’s fourth quarter 2007 House Price Index (HPI) report, provides a timely indicator of house price conditions for the nation and each of the nine Census Divisions.