FHFA: Home Prices Surge In August

The official numbers are in – and home prices continue to surge in the United States.

The Federal Housing Finance Agency reported Tuesday that home prices increased 1.5 percent in August from the previous month – and a whopping 8 percent from August 2019 amid historically low interest rates and a shortage of homes on the market during the Covid-19 pandemic.

For the nine census divisions, monthly house price increases ranged from 0.9 percent in the East South Central division to 1.9 percent in the West South Central division.  The annual increases changes ranged from 7.2 percent in the West North Central division to 9.7 percent in the Mountain division.

“This large month-over-month gain contributes to an already strong increase in prices over the summer,” said Dr. Lynn Fisher, FHFA’s Deputy Director of the Division of Research and Statistics. “These price gains can be attributed to the historically low interest rate environment, rebounding housing demand, and continued supply constraints.”

See the full report here.