Home prices grew in the first quarter, but at the slowest pace in 10 years, according to a government report released today.
Single-family home prices increased an average of 4%
compared to the first quarter of last year, said the Office of Federal Housing
Enterprise. The report does not give dollar amounts, only percentage changes.
Two states - Massachusetts and Michigan - were the only two
states to see declines in price, down 0.6% and 0.7%, respectively.
Despite all the bad news regarding the nation’s housing
industry, there still are areas that are continuing to have double-digit price
gains. The biggest increases came from Utah, at 17%, and Idaho and Montana,
both at 12%.
The office’s Home Price Index measures changes in actual
selling prices and appraisal values for refinanced homes. It excludes home that
have mortgages higher than $417,000.
Another government report showed U.S. construction
spending barely increased. Spending was up 0.1% in April, according to the
Commerce Department’s latest figures on the economy. Overall, the country’s
gross domestic product increased 0.6% in the first quarter.
May 31, 2007 - Home Prices Gain S-l-o-w-l-y
May 31, 2007