Washington DC Metro Tops House Price Growth in Q2 2009

Washington DC metro area house prices posted the largest house price increase among the twenty-five largest US metro areas, for which the Federal Housing Finance Agency’s (FHFA) calculates a seasonally-adjusted purchase-only house price index (HPI).

In particular, home prices in the Washington-Arlington-Alexandria, DC-VA-MD-WV, metro area increased on average 4.1% in the second quarter of 2009.

Overall, nine of the twenty-five metropolitan housing markets registered price increases while sixteen registered price decreases. Besides the Washington DC metro area tree more metropolitan markets registered home price increases in excess of 1% in the second quarter of 2009. These are Miami-Miami Beach-Kendall, FL, where house prices posted a quarterly increase of 3.2%, Houston-Sugar Land-Baytown, TX, where house prices increased 2.3% and Denver-Aurora-Broomfield, CO, where housing prices increased 1.2%.

The worst performing housing market among the 25 largest metropolitan areas was Phoenix-Mesa-Scottsdale, AZ, where home prices posted a quarterly decline of 6.3%. Three more metropolitan markets posted house price declines of 4% or more in the second quarter of 2009. These are Seattle-Bellevue-Everett, WA (-4.6%), Riverside-San Bernardino-Ontario, CA (-5.9%) and Nassau-Suffolk, NY (-4%).

The graph below presents house price changes in the second quarter of 2009 in all 25 metropolitan markets covered by the seasonally-adjusted purchase-only HPI.

Metropolitan Area House Price Changes in Q2 2009

On an annual basis, the rankings of the twenty-five metropolitan markets are different in terms of home price changes. Average home prices in the second quarter of 2009 posted annual gains only in three metropolitan markets, namely Houston-Sugar Land-Baytown, TX (2.9%), Denver-Aurora-Broomfield, CO (0.9%), and Pittsburgh, PA (0.1%). The worst performing metropolitan housing market was Miami-Miami Beach-Kendall, FL, where house prices posted an annual drop of 28.2%, followed by Phoenix-Mesa-Scottsdale, AZ, and Riverside-San Bernardino-Ontario, CA, with annual house price declines of 27.0% and 24.4%, respectively.

The graph below presents the annual declines posted as of the second quarter of 2009 in all 25 metropolitan markets covered by the seasonally-adjusted purchase-only HPI.

Metropolitan Area Annual House Price Changes in Q2 2009

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