U.S. House Prices Rise 1.5 Percent in Third Quarter

From the Federal Housing Finance Agency:

U.S. house prices rose 1.5 percent in the third quarter of 2016 according to the Federal Housing Finance Agency House Price Index. House prices rose 6.1 percent from the third quarter of 2015 to the third quarter of 2016. The Federal Housing Finance Agency's seasonally adjusted monthly index for September was up 0.6 percent from August. The House Price Index is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. The Federal Housing Finance Agency has produced a video of highlights for this quarter.

"Our data indicate that the deceleration in home price growth that we observed in late spring proved to be short-lived," said Federal Housing Finance Agency Supervisory Economist Andrew Leventis. "While price growth in select markets has cooled somewhat, for the U.S. as a whole, the third quarter showed no evidence of a widespread slowdown."

While the House Price Index rose 6.1 percent from the third quarter of 2015 to the third quarter of 2016, prices of other goods and services were nearly unchanged. The inflation-adjusted price of homes rose approximately 6.0 percent over the last year.

Significant Findings
Home prices rose in 49 states between the third quarter of 2015 and the third quarter of 2016. Delaware and the District of Columbia were the only areas not to see price increases. The top five states in annual appreciation were: 1) Florida 10.7 percent; 2) Oregon 10.4 percent; 3) Washington 10.4 percent; 4) Colorado 10.0 percent; and 5) Utah 9.5 percent.
Among the 100 most populated metropolitan areas in the U.S., annual price increases were greatest in the Tacoma-Lakewood, WA (MSAD), where prices increased by 12.9 percent. Prices were weakest in New Haven-Milford, CT, where they fell 1.7 percent.
Of the nine census divisions, the South Atlantic division experienced the strongest increase in the third quarter, posting a 1.8 percent quarterly increase and a 7.1 percent increase since the third quarter of last year. House price appreciation was weakest in the New England division, where prices rose 0.8 percent from the last quarter.


Tables and graphs showing home price statistics for metropolitan areas, states, census divisions, and the U.S. as a whole are included on the following pages.


Other Price Indexes

Most statistics in the quarterly house price index report reference price changes computed by Federal Housing Finance Agency's basic "purchase-only" House Price Index. In some cases, however, the reported statistics reference alternative price measures. The Federal Housing Finance Agency publishes – and makes available for download – three additional house price indexes beyond the basic "purchase-only" series. Although they use the same general methodology, the three alternatives rely on slightly different datasets as follows:
"Distress-Free" house price index. Sales of bank-owned properties and short sales are removed from the purchase-only dataset prior to estimation of the index.
"Expanded-Data" house price index. Sales price information sourced from county recorder offices and from Federal Housing Agency-backed mortgages are added to the purchase-only data sample. This index is used annually to adjust the maximum conforming loan limits, which dictate the dollar amount of loans that can be acquired by Fannie Mae and Freddie Mac.
"All-Transactions" house price index. Appraisal values from refinance mortgages are added to the purchase-only data sample.

Data constraints preclude the production of all types of indexes for every geographic area, but multiple index types are generally available. For individual states, for instance, three types of indexes are available. The various indexes tend to correlate closely over the long-term, but short-term differences can be significant.

Release of New Experimental County Indexes

Beginning with this release, Federal Housing Finance Agency is publishing a set of experimental annual house price indexes for counties across the country from 1975-2015. The indexes are constructed using the typical "repeat-transactions" methodology Federal Housing Finance Agency already uses. Unlike Federal Housing Finance Agency's other price indexes, however, the county indexes are annual price measures, meaning that a single index value is produced for each year. The county indexes complement a set of previously released five-digit ZIP code measures, and may be valuable to analysts seeking data on localized home price movements.

Background

Federal Housing Finance Agency's House Price Index tracks changes in average home prices by analyzing changes in home values for the individual properties. The underlying "repeat-transactions" methodology constructs index estimates by statistically evaluating price appreciation (or depreciation) for homes with multiple values over time. The purchase-only House Price Index uses sales price information from Fannie Mae- and Freddie Mac-purchased and Enterprise-guaranteed mortgages originated over the past 41 years. The purchase-only House Price Index is estimated with more than seven million repeat transactions. A video shows the basic methodology behind the Federal Housing Finance Agency House Price Index.

Fannie-Freddie to Raise Conforming Loan Limits in 2017

The Federal Housing Finance Agency today announced that the maximum baseline conforming loan limit for mortgage loans acquired by Fannie Mae and Freddie Mac in 2017 will increase to $424,100 from $417,000. This will be the first increase in the conforming loan limit since it was raised to $417,000 in 2006.

The Housing and Economic Recovery Act of 2008 established $417,000 as the baseline loan limit and mandated that after a period of price declines, the baseline loan limit would not be permitted to rise until home prices had returned to pre-decline levels.

The loan limit will rise 1.7% in 2017 because the Federal Housing Finance Agency has determined that the average U.S. home value in the third quarter of this year increased 1.7% above its level in the third quarter of 2007.

Higher loan limits will be in effect in higher-cost areas as well. In areas where 115% of the local median home value exceeds the baseline loan limit, the maximum area loan limit will be higher. The new ceiling loan limit in high-cost markets will be $636,150 (150% of the $424,100) for single-family properties. The previous ceiling was $625,500.

Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $636,150 for single-family properties, but actual loan limits may be higher in some specific locations. A list of the 2017 maximum conforming loan limits for all counties and county-equivalent areas in the country may be found here.

Request for Volunteers for Committees

Your Home Builders Association of Greenville is requesting volunteers to serve on our committees and councils for the 2017 calendar year. There are several committees with different interest areas, from government policy to community service. Below is a list of our open committees:

Associate Members Committee

Building Codes Committee

Building Committee

Community Service Committee

Government Affairs Committee

Membership Committee

Nominating Committee

Professional Women in Building Council

Sales and Marketing Council

Southern Home and Garden Show Committee

You can find a full list of committees and descriptions here. If interested in serving on a committee, please email eo@hbaofgreenville.com.

The Home Builders Association of South Carolina is also seeking volunteers to serve on their committees in 2017. Read more about their committees here.

Don't Forget--New Member Reception and Meet the Board Tomorrow (Thursday, Dec. 1st)!

This Thursday, December 1st, your Home Builders Association of Greenville will be hosting a New Member Reception and Meet the Board at our office, sponsored by Pestban. The event is a great chance for new and potential members to meet our Board of Directors, staff, and other members to hear why joining the Home Builders Association is beneficial for your business. If you have questions about the event contact the Home Builders Association at (864) 254-0133 or find out more about joining on our website, hbaofgreenville.com.

You're invited!

Thursday, December 1, 2016

5:30-7 p.m.

Home Builders Association office

at 5 Creekside Park Ct
Greenville, SC 29615

Sign up Here

Earn Your CAPS at IBS

The number of adults over age 65 will increase dramatically to around 80 million between now and 2050. Seeing as most wish to remain in their homes as they age, clients will need skilled remodelers to make the necessary home modifications that allow them to age in place.

The Certified Aging-in-Place Specialist designation is your opportunity to reach this fast-growing demographic. And you can earn it in one weekend as part of the 2017 NAHB International Builders’ Show® Pre-Show Courses this January in Orlando.

Certified Aging-in-Place Specialist includes three required courses:

• Business Management for Building Professionals, Saturday, Jan. 7, 9 a.m.-5 p.m.
• Marketing and Communications Strategies for Aging and Accessibility (CAPS I), Sunday, Jan. 8, 9 a.m.-5 p.m.
• Design/Build Solutions for Aging and Accessibility (CAPS II), Monday, Jan. 9, 9 a.m.–5 p.m.

Provide a growing population the renovations they need — and build your business at the same time. Regsiter for these courses today.

To register for the international Builders' Show, click here.

DID YOU KNOW? The Professional Women in Building Council is offering travel grants to its members who wish to attend the International Builders' Show in Orlando. Contact Abbey if you are interested.

Have a legal question? The Legal Hotline Has Your Answer

With educational and networking opportunities, several savings programs, and targeted marketing possibilities, it seems that being a member of the Home Builders Association of Greenville has endless benefits. But have you heard about our Legal Hotline? Submit a question to the legal hotline and receive a quick, confidential answer from a qualified attorney at Gallivan, White & Boyd, P.A..

You can access the legal hotline here, or contact your Home Builders Association of Greenville if you have any questions regarding the process at (864) 254-0133.

HBA Legal Counsel Ron Tate addresses the membership regarding the Legal Hotline at a recent general membership meeting.

Housing Starts Jump 25.5% in October

Led by impressive gains in both single-family and multifamily production, nationwide housing starts surged 25.5% in October to a seasonally adjusted annual rate of 1.32 million units, according to newly released data from the US Department of Housing and Urban Development and the Commerce Department. Single-family starts reached their highest level since October 2007 while multifamily production jumped 68.8% from the previous month.

“These robust figures correlate with strong builder optimism in the housing market,” said National Association of Home Builders Chairman Ed Brady. “A firming job market, a growing economy and rising household formations will keep the housing recovery on track into next year.”

“Multifamily production bounced back after an unusually weak reading last month, while single-family starts exhibited unusually strong growth as well,” said National Association of Home Builders Chief Economist Robert Dietz. “Though October’s single- and multifamily production rates are clearly unsustainable, we expect continued growth in the housing sector in the months ahead.”

Single-family starts rose 10.7% in October to a seasonally adjusted annual rate of 869,000 units while multifamily production climbed 68.8% to 454,000 units.

Combined single- and multifamily starts posted double-digit gains in all four regions in October. The Northeast, Midwest, South and West increased 44.8%, 44.1%, 17.9% and 23.2%, respectively.

Overall permit issuance edged up 0.3% to a seasonally adjusted annual rate of 1.23 million in October. Single-family permits rose 2.7% to a rate of 762,000, while multifamily permits fell 3.3% to 467,000.

Permit issuance increased 12.1% in the Midwest and 7.5% in the West. Meanwhile, the Northeast and South posted respective losses of 21.1% and 2.4%.