U.S. home prices grew 17.7% year over year and 4% quarter over quarter during second-quarter 2022, according to the latest iteration of the Federal Housing Finance Agency (FHFA) House Price Index.
The second quarter continued the trend of positive annual appreciation that has persisted for every quarter since the start of 2012, with home prices up in all 50 states as well as the District of Columbia. Florida led the nation in yearly home price growth at 29.8%, followed by Arizona at 25.5%, North Carolina at 25.2%, Montana at 24.9% and Tennessee at 24.3%. D.C., with 5.2% annual home-price appreciation, had the lowest yearly increase.
With three of the top five states for year-over-year home price growth, the South was the Census region where prices rose the compared to second-quarter 2021. Broken down further by the nine Census divisions, the South Atlantic (comprised of Delaware, Maryland, D.C., West Virginia, Virginia, North Carolina, South Carolina, Georgia and Florida) saw the stoutest four-quarter price growth at 23%, as well as the strongest quarterly jump at 5.2%.
Home prices also grew year over year in each of the nation’s 100 largest metro areas, with the largest increase in North Port-Sarasota-Bradenton, Florida, at 36.4%. Washington, D.C., had the weakest growth at 9.1%.
Despite the enduring streak of price growth, the strength of the recent appreciation surge has waned significantly, particularly as the second quarter drew to a close, according to William Doerner, supervisory economist in the FHFA’s division of research and statistics.
“Housing prices grew quickly through most of the second quarter of 2022, but a deceleration has appeared in the June monthly data,” Doerner said. “The pace of growth has subsided recently, which is consistent with other recent housing data.”