FHFA Monthly Home Prices: July 2012

Today, the Federal Housing Finance Agency (FHFA) released the latest results of their monthly house price index (HPI) showing that in July, nationally, home prices increased 0.2% since June rising 3.90% above the level seen in July 2011.

The FHFA monthly HPI are formulated from home purchase information collected from mortgages that have been sold to or guaranteed by Fannie Mae and Freddie Mac.

Homebuilder Blues: NAHB/Wells Fargo Home Builder Ratings April 2012

Today, the National Association of Home Builders (NAHB) released their latest Housing Market Index (HMI) showing a decline of all measures in April with the composite HMI index falling to 25 while the "buyer traffic" index declined to 18.

While all indicators have made notable increases as of late, it's important to note that conditions still remain distressed by historic standards though, the last few months results appears to indicate a major change in the builder sentiment.

The new home market will likely not resume any significant form of healthy function until the considerable overhang of inventory is cleared.

Radar Watching: November 2011

As I have noted in the past, since the home price index data provided by Radar Logic is more timely, unadjusted and un-smoothed it is particularly useful for gaining deeper visibility over our housing markets.

As for the latest trends, it’s important to note that the 25-MSA Composite is continuing to show significant year-over-year declines and has now dropped well below all recent lows reaching a level not seen since early 2003.

The latest data shows that as of late November, prices have declined 7.11% below the level seen in
November 2010 while continuing to turn down from a seasonal peak reached in mid-June.

With the spring/summer selling season now complete and declining prices now registering with regularity, there is nowhere for prices to go but down. Look for a declining trend to continue to materialize and likely run into March or April of 2012.