Apprecation or Slump? Depends on Where You Live

For the first time in nearly thirteen years, home prices in the US experienced a quarterly decline, according to a new report released by the Office of Federal Housing Enterprise Oversight (OFHEO).

While select markets still maintain robust rates of appreciation, our newest data show price weakening in a very significant portion of the country,” said Lockhart. “Indeed, in the third quarter, more than 20 states experienced price declines and, in some cases, those declines are substantial.”

Many of the cities and states experiencing the sharpest declines this quarter were the same cities and states experiencing the sharpest increases just a couple of years ago, suggesting some price corrections in those markets.

Of course, national averages don't tell the whole story. Washington State was one of the exceptions, with the fifth-highest rate of appreciation (7%) during the quarter. And a particular hot spot is Wenatchee, which for the third consecutive quarter had the highest four-quarter appreciation among the 287 Metropolitan Statistical Areas on OFHEO’s list of “ranked” cities. Annual appreciation in Wenatchee was 15.7 percent.

You can download a PDF of the complete OFHEO report here.