National Market Report - April 2023

The Federal Housing Finance Agency (FHFA) recently released its monthly House Price Index (HPI) report for February 2023, which revealed a 1.4% increase in home prices compared to the previous month, with a year-over-year increase of 12.2%. The report indicates that the strong demand for homes and low inventory continue to drive up prices across the United States, with all nine census divisions reporting year-over-year price increases.

The Mountain census division, which includes states such as Arizona, Colorado, and Montana, saw the largest year-over-year price increase at 17.4%. Meanwhile, the East North Central census division, which includes states such as Illinois, Michigan, and Ohio, saw the smallest year-over-year price increase at 8.8%.

The FHFA report also revealed that home prices increased in all 50 states and the District of Columbia over the past year, with Idaho and Utah experiencing the largest increases at 28.2% and 27.6%, respectively.

The report's data is based on home sales prices and mortgage information from Fannie Mae and Freddie Mac, and it is used by many organizations, including the mortgage industry, government agencies, and researchers, to track and analyze the real estate market.

Despite the ongoing COVID-19 pandemic and economic uncertainty, the FHFA report suggests that the housing market in the United States remains strong, driven by low inventory, high demand, and historically low interest rates.

However, the report also raises concerns about the affordability of homes for many Americans, with rising home prices making it increasingly difficult for first-time homebuyers and lower-income families to enter the market.

Overall, the FHFA House Price Index report highlights the continued strength of the real estate market in the United States, while also underscoring the need for affordable housing solutions to ensure that all Americans have access to safe and affordable homes.