FHFA House Price Index Increases Month-Over-Month and Year-Over-Year in December

On Tuesday, the Federal Housing Finance Agency (FHFA) released its House Price Index (HPI®) for December 2023 and all of 2023. US house prices, seasonally adjusted, increased 0.1% month-over-month in December.

In 2023Q4, prices increased 1.5% when compared to Q3 and 6.5% when compared to 2022Q4.

According to the FHFA, all nine census divisions saw positive house price changes year-over-year. The New England division recorded the strongest appreciation, up 10.3%, while the West South-Central division posted the smallest four-quarter appreciation at 3.2%.

The FHFA points out that nationally, the US housing market has experienced positive annual appreciation every quarter since the start of 2012.

Commenting on the December HPI, Anju Vajja, Acting Deputy Director for FHFA’s Division of Research and Statistics, said:

“US House prices increased modestly over the course of 2023. However, the market showed signs of softening as house price appreciation was lower in the fourth quarter of the year than in the previous quarter.”