The Office of Federal Housing Enterprise Oversight (OFHEO) just released data from a study that shows average U.S. home prices increased 12.5% from the first quarter of 2004 to the first quarter of 2005. In California, the average appreciation for this same period was 25.4%.
And, we’re constantly being asked … is this a housing bubble? Well, if you heard Allan Greenspan this week he stated his view that he doesn't believe there is a national housing bubble.
Is the market slowing? Well, in our area the lack of inventory means fewer homes have sold.
The same study by the OFHEO shows that California's appreciation rate during the first quarter of 2005 was 3.8%. If you annualize that number (3.8 x 4) you can project an annual appreciation rate of 15.2% for the year 2005.
So, if you owned a house in California during this past year … congratulations to you!
And, if you want to read more about the government study, it is available online at: http://www.ofheo.gov