Home Prices in July Fell to Lowest Level Since Sept. 2004
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Home prices in the U.S. fell to the lowest level in nearly six years during July, giving back the gains made before the expiration of the government-backed homebuyer tax credits in April.
The Federal Housing Finance Agency reported that the home price index fell 0.5 percent on a seasonally adjusted basis from June. The index fell 1.2 percent in June, revised down from a previously reported fall of 0.3 percent.
The index fell to 192.4 in July, the lowest mark since hitting 191.7 in September of 2004.
The index is calculated by using purchase prices of homes financed with mortgages sold to or guaranteed by government control companies Fannie Mae and Freddie Mac.
The falling home prices are a double-edged sword as they make homes more affordable for consumers, but many Americans have much of their net worth tied up in the value of their homes. Lower home values can make them feel less wealthy and hamper consumer spending.
Home prices fell in six of the nine regions from the index with the largest decline coming from the South Atlantic (Delaware, Maryland, District of Columbia, Virginia, West Virginia, North Carolina, South Carolina, Georgia and Florida), falling 1.6 percent.
Drops were also seen in July for the Mountain, West North Central, West South Central, East North Central and New England regions.
The Pacific region (Hawaii, Alaska, Washington, Oregon and California) showed the greatest increase during July, rising 1.1 percent.
The Federal Housing Finance Agency reported that the home price index fell 0.5 percent on a seasonally adjusted basis from June. The index fell 1.2 percent in June, revised down from a previously reported fall of 0.3 percent.
The index fell to 192.4 in July, the lowest mark since hitting 191.7 in September of 2004.
The index is calculated by using purchase prices of homes financed with mortgages sold to or guaranteed by government control companies Fannie Mae and Freddie Mac.
The falling home prices are a double-edged sword as they make homes more affordable for consumers, but many Americans have much of their net worth tied up in the value of their homes. Lower home values can make them feel less wealthy and hamper consumer spending.
Home prices fell in six of the nine regions from the index with the largest decline coming from the South Atlantic (Delaware, Maryland, District of Columbia, Virginia, West Virginia, North Carolina, South Carolina, Georgia and Florida), falling 1.6 percent.
Drops were also seen in July for the Mountain, West North Central, West South Central, East North Central and New England regions.
The Pacific region (Hawaii, Alaska, Washington, Oregon and California) showed the greatest increase during July, rising 1.1 percent.
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