Homes Have Experienced Price Gains Every Quarter Since 2012

November 28, 2023

According to the Federal Housing Finance Agency’s (FHFA) Home Price Index (HPI) which compared home values between the third quarter of 2022 and the third quarter of 2023, the average U.S. home price gained a cool 5.5% in value year-over-year. In comparison, home prices rose 2.1% compared to the second quarter of 2023.

The FHFA’s seasonally adjusted monthly index for September was up 0.6% from August.

“U.S. house price growth continued to accelerate in the third quarter, appreciating more than in each of the previous four quarters,” said Dr. Anju Vajja, Principal Associate Director in FHFA’s Division of Research and Statistics. “House prices rose in the third quarter in all census divisions and are higher than one year ago, driven primarily by a low supply of homes for sale.”

Significant Findings:

Nationally, the U.S. housing market has experienced positive annual appreciation each quarter since the start of 2012.
House prices rose in 49 states between the third quarter of 2022 and the third quarter of 2023. The five states with the highest annual appreciation were 1) Vermont, 11.8%; 2) Maine, 11.1%; 3) New Hampshire, 10.3%; 4) Connecticut, 9.9%; and 5) New Jersey, 8.7%. The two areas with annual price depreciation were 1) Hawaii, -0.9%; and 2) District of Columbia, -0.8%.
House prices rose in 93 of the top 100 largest metropolitan areas over the last four quarters. The annual price increase was the greatest in Albany-Schenectady-Troy, NY (MSAD) at 12.4%. The metropolitan area that experienced the most significant price decline was Austin-Round Rock-Georgetown, TX (MSAD) at – 5%.
All nine census divisions had positive house price changes year-over-year. The New England division recorded the strongest appreciation, posting a 9.2% increase from the third quarter of 2022 to the third quarter of 2023. The Pacific division recorded the smallest four-quarter appreciation, at 2.0%.
Trends in the Top 100 Metropolitan Statistical Areas are available in our interactive dashboard: The first tab displays rankings while the second tab offers charts.