Housing prices fell a seasonally adjusted 0.5% from June to July, according to the Federal Housing Finance Agency’s monthly House Price Index, which comes on top of a downwardly revised 1.2% dip in June.
The index is 3.3% lower versus one year ago and is now 13.8% below its April 2007 peak. At the current level, prices are near a six-year low.
Source: FHFA website
The chart below, also from the FHFA website, details the drop in prices after the peak reached in April 2007.
Price declines have moderated since November 2008, but the general trends remains to the downside.
We did see some support leading up to the expiration of the first time homebuyers tax credit in November 2009, and some additional support leading up to the second extension in April 2010, which also included repeat buyers who met certain criteria.
But buyers have been scarce in recent months, putting renewed pressure on housing prices.
The index is calculated using purchase prices of houses backing mortgages
that have been sold to or guaranteed by Fannie Mae or Freddie Mac, according to the FHFA.
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