According to the Federal Housing Finance Agency’s (FHFA) U.S. House Price Index, house prices saw a healthy increase nationwide for the month of August, seeing a 1.5% uptick from the month prior. Looking back year-over-year, this is an 8% increase from August 2019. Additionally, a revised report for July changed the previous increase of 1% to 1.1%.
“U.S. house prices posted a strong increase in August,” said Dr. Lynn Fisher, FHFA’s Deputy Director of the Division of Research and Statistics. “Between July and August 2020, national prices increased by 1.5%, which represents the largest one-month price increase observed since the start of the index in 1991. This large month-over-month gain contributes to an already strong increase in prices over the summer. These price gains can be attributed to the historically low interest rate environment, rebounding housing demand and continued supply constraints.”
For context, the House Price Index from FHFA measures changes in single-family home values based on data from all 50 states and over 400 American cities that go back to the 70s. The consecutive jump in price growth in the previous months suggest a highly active housing market in which buyers are taking advantage of low interest rates causing high demand—more positive news for builders across the nation.