The Federal Housing Finance Agency has released its report of the year-on-year changes in housing prices for the third quarter of 2022. Here are some snippets:
House prices rose in all 50 states and the District of Columbia between the third​ quarters of 2021 and 2022. The five areas with the highest annual appreciation were: 1) Florida 22.7 percent; 2) South Carolina 18.4 percent; 3) Tennessee 17.9 percent; 4) North Carolina 17.4 percent; and 5) Georgia 16.7 percent. The areas showing the lowest annual appreciation were: 1) District of Columbia 1.8 percent; 2) Oregon 7.6 percent; 3) California 7.6 percent; 4) Minnesota 7.7 percent and 5) Louisiana 8.3 percent.
and
House prices rose in all but two of the top 100 largest metropolitan areas over the last four quarters. Annual price increase was greatest in North Port-Sarasota-Bradenton, FL, where price increased by 29.2 percent. Two metropolitan areas that experienced price declines are San Francisco-San Mateo-Redwood City, CA and Oakland-Berkeley-Livermore, CA, where prices decreased by 4.3 percent and 0.6 percent, respectively.
Since the annualized inflation rate is 8.5%, that means that the five areas showing the lowest appreciation are all showing real price declines. Note, too, that this report does not reflect the impact of major technology sector layoffs. Those will certainly influence The San Francisco-San-Mateo-Redwood City and Oakland-Berkeley-Livermore metropolitan areas. Translation: expect more declines to come. Perversely, since in California changes in real estate tax rates don’t take effect until a house changes hands, not only may that make houses harder to sell it will increase tax revenues on those that do sell.
