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Ceredigion showed the highest annual percentage change, rising by 3.5% to £248,000 in the 12 months to February 2024. In contrast, Newport showed the lowest annual percentage change, decreasing by 7.5% to £220,000 in the 12 months to February 2024. This new release uses the Price Index of Private Rents (PIPR) to provide more insight into the UK private rental sector and includes headline UK HPI statistics.
Change in FHFA State House Price Indexes (Seasonally Adjusted, Purchase-Only Index, 2023Q
This method involves analyzing mortgage transaction data from Fannie Mae and Freddie Mac to track home value changes over time, focusing on properties with at least two successive sales. The index measures the price change of the same property over different periods, providing a realistic and consistent view of price movements in the housing market. For the nine census divisions, seasonally adjusted monthly price changes from December 2023 to January 2024 ranged from -0.6 percent in the South Atlantic division to +1.5 percent in the West North Central division. The 12-month changes were all positive, ranging from +3.8 percent in the West South Central division to +8.7 percent in the East North Central division. In Wales, 5 of the 22 local authority areas showed an increase in average house prices in the 12 months to February 2024.
FHFA HPI Release Dates
Quarterly Purchase-Only Indexes The standard indexes reported in quarterly news releases. The FHFA HPI serves as a timely, accurate indicator of house price trends at various geographic levels. Because of the breadth of the sample, it provides more information than is available in other house price indexes. It also provides housing economists with an improved analytical tool that is useful for estimating changes in the rates of mortgage defaults, prepayments and housing affordability in specific geographic areas. Our new local housing statistics tool summarises the latest private rents and house price statistics for local areas.
Price change
This was up from 9.0% in the 12 months to February 2024 (revised estimate) and represents the highest annual percentage change since this UK data series began in January 2015. One of its drawbacks is that it does not fully differentiate between pure house price appreciation and price changes due to depreciation or home improvement. The rent series is the owner’s equivalent rent index published by the Bureau of Labor Statistics (BLS); this series is intended to measure changes in the service flow value of owner-occupied housing. Average house prices in Wales decreased by 1.2% (provisional estimate) in the 12 months to February 2024.
Price Index of Private Rents
The RPI is also available at the zip code level and can be constructed to track price trends for specific characteristics (e.g., ranch-style house, colonial-style house, etc.) since preferences can change over time. The Case-Shiller index prices are measured monthly and track repeat sales of houses using a modified version of the weighted-repeat sales methodology proposed by Karl Case, Robert Shiller, and Allan Weiss. This means that, to a large extent, it can adjust for the quality of the homes sold, unlike simple averages. Although FHFA has published experimental house price indexes for some ZIP codes, those indexes are annual (i.e. quarterly index values are not provided). Researchers needing quarterly values for ZIP codes may be interested in using index values for the applicable metropolitan area. A comprehensive report is published every three months, approximately two months after the end of the previous quarter.
The House Price Index vs. the S&P CoreLogic Case-Shiller Home Price Indexes
For the remaining areas, MSAs and Divisions, one-year and five-year rates of change are provided. Data is compiled by reviewing mortgages purchased or securitized by Fannie Mae and Freddie Mac. In Wales, the average price decreased by 1.2% in the 12 months to February 2024 (provisional estimate), up from a decrease of 2.3% in the 12 months to January 2024 (revised estimate). These caps and restrictions will not be reflected in the price of new lets used to estimate the price of existing tenancies.
U.S. House Price Index Report - 2023Q3
Interchangeable with "annual inflation" (or "annual growth", if positive). That is, the estimates of appreciation are based on repeated valuations of the same property over time. Therefore, each time a property "repeats" in the form of a sale or refinance, average appreciation since the prior sale/refinance period is influenced. Each month, Fannie Mae and Freddie Mac provide FHFA with information on their most recent mortgage transactions. These data are combined with the data from previous periods to establish price differentials on properties where more than one mortgage transaction has occurred. The data are merged, creating an updated historical database that is then used to estimate the HPI.
The quarterly purchase-only HPI is based on more than eight million repeat transaction pairs over 43 years. This gives a more accurate reflection of current property values than the Commerce Department index. The HPI also can be updated efficiently using data collected by Fannie Mae and Freddie Mac in the normal course of their business activity.
How the HPI Is Used
In Canada, the New Housing Price Index is calculated monthly by Statistics Canada. Additionally, a resale house price index is also maintained by the Canadian Real Estate Association, based on reported sale prices submitted by real estate agents, and averaged by region. The FHFA HPI incorporates tens of millions of home sales and offers insights about house price fluctuations at the national, census division, state, metro area, county, ZIP code, and census tract levels. FHFA uses a fully transparent methodology based upon a weighted, repeat-sales statistical technique to analyze house price transaction data.
Each subsequent month, updated Northern Ireland data are used to revise estimates for the UK. This means that there is a two-month revision period for the UK series in PIPR. In recent periods, the total transaction volumes and new build volumes available to calculate UK HPI estimates for recent months have been lower than historically. The Office for National Statistics (ONS) and HM Land Registry (HMLR) are working to resolve this. Metropolitan Division refers to a county or group of counties within a Metropolitan Statistical Area that has a population core of at least 2.5 million.
More detail is available in our Quality assurance of administrative data used in the PIPR methodology. Inflation is the rate at which prices (for renting or purchasing property) rise and fall over time. For Great Britain in March 2024, the average private rent was highest for detached properties (£1,446) and lowest for flats and maisonettes (£1,211). Average private rent was highest for properties with four or more bedrooms (£1,912) and lowest for properties with one bedroom (£995). In March 2024, the average private rent was highest in Kensington and Chelsea, London (£3,305), and lowest in Dumfries and Galloway, Scotland (£475). Excluding London, the local area with the highest average private rent in March 2024 was the City of Bristol, South West (£1,748).
US CoreLogic S&P Case-Shiller Index Continues to Strengthen, With Annual Gain of 5.5% in December - CoreLogic
US CoreLogic S&P Case-Shiller Index Continues to Strengthen, With Annual Gain of 5.5% in December.
Posted: Tue, 27 Feb 2024 08:00:00 GMT [source]
The Price Index of Private Rents (PIPR) is released as official statistics in development, and is subject to revisions if improvements in the methodology are identified. Currently, average private rent is published for Great Britain, but not for the UK. We aim to publish average rent prices for the UK and Northern Ireland in March 2025. A house price index (HPI) measures the price changes of residential housing as a percentage change from some specific start date (which has an HPI of 100). Methodologies commonly used to calculate an HPI are hedonic regression (HR), simple moving average (SMA), and repeat-sales regression (RSR). The weights used in constructing the indexes are estimates for the shares of one-unit detached properties in each state.
Transactions that merely represent title transfers to lenders will not appear in the data. Once lenders take possession of foreclosed properties, however, the subsequent sale to the public can appear in the data. As with any other property sale, the sales information will be in FHFA’s data if the buyer purchases the property with a loan that is bought or guaranteed by Fannie Mae or Freddie Mac. FHFA has access to this information by virtue of its role as the federal regulator responsible for these government-sponsored enterprises. House prices fell 0.1 percent nationwide in November compared to October, according to the latest Federal Housing Finance Agency (FHFA) House Price Index (HPI®). The previously reported 0.0 percent price decline in October 2022 remained unchanged.
Prior to the release of 2012Q2 data, the "sales prices" used in connection with a purchase-money mortgage was calculated value based on mortgage's loan-to-value (LTV) ratio and the loan amount. The loan amount was divided by the LTV ratio and the result was used as the measure of the actual selling price. With the release of the 2012Q2 data, FHFA has begun using the property sales price as reported in the Enterprises' data submissions. The HPI is based on transactions involving conventional and conforming mortgages on single-family properties. It is a weighted repeat sales index, measuring average price changes in repeat sales or refinancings on the same properties.
There was a varied distribution in average monthly private rents across local authorities in England and Wales, and Broad Rental Market Areas in Scotland. Annual rents inflation was lowest in the North East, at 6.1% in March 2024. This was up from 5.7% in February 2024, and represents the joint-highest annual percentage change since this series began in January 2006. The monthly indexes are calculated in the same way the quarterly indexes are constructed, except transactions from the same quarter are no longer aggregated. To construct the quarterly index, all transactions from the same quarter are aggregated and index values are estimated using the assigned quarters. In the monthly indexing model, all transactions for the same month are aggregated and separate index values are estimated for each month.
The census division indexes are set equal to 100 in the relevant base periods. Then, the index values for subsequent periods are increased (or decreased) by the weighted average quarterly (or monthly) price change for the underlying states. House prices fell in January, down 0.1 percent from December, according to the Federal Housing Finance Agency (FHFA) seasonally adjusted monthly House Price Index (HPI®).
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