Tuesday, May 28, 2013

Idaho ranks fourth in nation in housing price resurgence

Stock prices jumped sharply this morning on the news that U.S. home prices had jumped 10.9 percent in March compared to a year ago, the biggest surge since April 2006.

At the end of the first quarter, prices across the nation rose 6.7 percent, with Nevada, Arizona and California leading the charge, and Idaho coming in fourth, largely due to a big rebound in the Boise-Nampa Metropolitan Statistical Area.

The Federal Housing Finance Agency reported prices of existing single-family homes in Idaho rose 15 percent in the past year, the fourth-highest rate of appreciation from the first quarter of 2012 to the first quarter of 2013.

While Boise/Nampa posted the state's biggest yearly upturn -- 10.17 percent -- ranking fifth in the nation, Idaho Falls was not so dramatic, showing an uptick of .57 percent, and Pocatello home prices rose a modest Pocatello, 1.23 percent.

Before anyone in this part of the state gets too jealous, consider this:
  • If you bought a $150,000 home in Boise in the first quarter of 2006, it would be worth $118,550 today.
    A line graph indexing Boise home prices from 2006 to 2013
  • If you bought a $150,000 home in Idaho Falls in the first quarter of 2006, it would be worth $150,705 today.
    A line graph indexing Idaho Falls home prices from 2006 to 2013
I learned this by using the FHFA's Housing Price Index calculator, which can be found here: Housing Price Index Calculator.

The FHFA House Price Index is calculated using the purchase prices of homes with mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. "The FHFA index further reinforces that Idaho's economy and housing markets have stabilized and are improving," said Gerald M. Hunter, president of the Idaho Housing and Finance Association, in a press release.