Home Prices Fell 0.3% in August

U.S. home prices fell 0.3 percent on a seasonally-adjusted basis from July to August, according to the Federal Housing Finance Agency’s monthly House Price Index. The previously reported 0.3 percent increase in July was unrevised. For the 12 months ending in August, U.S. prices fell 3.6 percent. The U.S. index is 10.7 percent
below its April 2007 peak.

The largest price declines in August were in the South Atlantic states (down 1.6%) and New England (down 1.1%)

The biggest price gains in August came, where the housing bubble was the most intense, in the Pacific region (up 1.2%) and Mountain region (up 0.8%),

In the past year, prices have fallen in eight of nine regions, with only the West South Central region (Oklahoma, Texas, Arkansas and Louisiana) showing a small 0.4% gain. Prices were down 7.8% in the past year in the Mountain states and 6.5% in the Pacific states.

The FHFA monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac.