The nation continued to see housing prices appreciate at a quick pace, but signs of cooling in the sector were also evident.

The Office of Federal Housing Enterprise Oversight said Thursday that Dow Jones NewswiresAverage U.S. home prices rose 12.5% from the first quarter of 2005 to the first quarter of 2006.

The figures were released as part of the agency's quarterly House Price Index. This is considered the best gauge of housing prices, because it compares prices of the same houses sold or refinanced over time. OFHEO said housing prices continued to rise the most in Arizona, up 3.8% in the first quarter of 2006 and up 35.5 percent from the first quarter of 2005.

OFHEO reported that Florida home prices increased 26.6% from the first quarter of 2005. This gives the state the second-highest price appreciation. The five states with the lowest annual price appreciation were Michigan at 2.9%, Ohio at 3.4%, Indiana at 4.2%, Nebraska at 4.5% and Kansas at 4.4%.

OFHEO also reported price increases in areas affected by Hurricane Katrina. In the New Orleans market, prices increased 14.3% over the first quarter of 2005, and in Gulfport-Biloxi, Miss., prices increased 15.9% in 12 months.

By M. Sese
http://realestatepress.org