This year's second quarter saw the largest quarterly growth in home prices in nearly seven years, according to FHFA's purchase-only home price index (HPI).
[IMAGE]The agency issued a ""report"":http://www.fhfa.gov/webfiles/24216/q22012hpi.pdf Thursday showing that house prices rose 1.8 percent from the year's first quarter to the second quarter-the largest growth since the fourth quarter of 2005-and 3.0 percent year-over-year. Adjusted for inflation, the HPI rose approximately 1.3 percent over the latest year.
The latest quarter also marks the first time since 2007 that a second quarter posted year-over-year gains.
FHFA's expanded-data HPI (which adds transactions information from county recorder offices and FHA) rose 2.0 percent over Q2, bringing the index up 2.4 percent over the latest four quarters.
[COLUMN_BREAK]The seasonally adjusted purchase-only HPI rose in 43 states in the second quarter. The Census' ""Mountain"" region saw the most growth (posting an average 6.99 percent year-over-year increase), while ""Middle Atlantic"" and ""New England"" posted average price decreases (0.61 percent and 1.29 percent, respectively).
""Although some housing markets are still facing significant challenges, house prices were quite strong in most areas in the second quarter,"" said Andrew Leventis, principal economist for FHFA. ""The strong appreciation may partially reflect fewer homes sold in distress, but declining mortgage rates and a modest supply of homes available for sale likely account for most of the price increase.""
A data sample of 12 metro areas across the country showed that the share of distressed sales in the market fell to 29.1 percent, a sharp drop from the first quarter's 38.3 percent share.
*Metros with highest appreciation (year-over-year)*
* Phoenix-Mesa-Glendale, Arizona (5.98 percent)
* Boise City-Nampa, Idaho (5.88 percent)
* Columbus, Indiana (5.05 percent)
* Bismarck, North Dakota (5.02 percent)
* Huntington-Ashland, West Virginia-Kentucky-Ohio (4.46 percent)
*Metros with highest depreciation (year-over-year)*
* Port St. Lucie, Florida (7.46 percent)
* Tacoma, Washington (6.44 percent)
* Kankakee-Bradley, Illinois (5.70 percent)
* Tallahassee, Florida (5.55 percent)
* Chico, California (5.52 percent)