The widely viewed Case-Shiller home price index showed a year-over-year increase of 3.6% from Q3 2011 to Q3 2012. This was welcome news, and widely anticipated considering the strong summer selling season. On a non-adjusted basis, the index will have a tough time posting additional gains as we move into more difficult year-over-year comparisons in the months ahead.
The FHFA, which covers only single family housing data from Fannie Mae and Freddie Mac, showed a 1.1% rise compared to the second quarter. Seasonally adjusted, prices rose 4.0% from Q3 2011, to Q3 2012. These numbers are in line with Case-Shiller when making year-over-year comparisons.
Katy Texas home prices have been on a tear recently, but I suspect even our area will be affected by some of the hurdles we face heading into 2013. Jonathan Miller notes that falling mortgage rates are not creating home sales. Housing Pulse also notes that 1st-time home buyers are not seeing gains from the so-called recovery. The changes coming to FHA January 1st will only make things more difficult for those looking to buy their first home.