US House prices rise in Q1, annual national home price pace to accelerate in rest of 2016

In the first quarter of 2016, US house prices were up 1.3%, according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). Within the purchase only, seasonally adjusted index, this was the nineteenth straight quarterly price rise. On an annual basis, house prices were up 5.7% y/y in Q1 2016. Meanwhile, the Federal Housing Finance Agency’s seasonally adjusted purchase-only home price index was up 0.7% in March, as compared with consensus projections of 0.5%.

Home price data for February was upwardly revised modestly. As of March, the FHFA index rose 6.1% y/y, majorly consistent with other home measure of national home prices, said Barclays in a research report. The Pacific and Mountain regions recorded the largest price growth in March. Pacific recorded a 1.2% m/m rise, whereas the Mountain region recorded a gain of 1.7% m/m.

Meanwhile, prices in New England dropped for the second straight month, declining 0.2%, whereas the prices in Middle Atlantic fell 0.3% m/m, reversing some of the gains recorded in February. Annual national home price pace is expected to witness a similar appreciation in the rest of 2016, noted Barclays.