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US home prices rose 13.4% in past year
Sep 3, 2005

The Office of Federal Housing Enterprise Oversight (www.ofheo.gov) has released a report, which notes a 13.4% home value increase during the year that ended June 30. What about the future? Economists and officials are uncertain. Some say prices will continue to rise while others argue they will return to normal values.

This rise should come as a shock when looking at other news of unemployment rates and the recent recession. However, the fact is the last year beat the last 25 years of price increases.

The causes are more arguable than where the prices will go. Perhaps people demand more for their homes or buyers are more willing to take up long mortgages. Reality is likely a combination of many factors.

The OFHEO is widely considered to be one of the most accurate trackers of housing values.  [archive]

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