May 31, 2007 - Home Prices Gain S-l-o-w-l-y
Single-family home prices increased an average of 4 percent compared to the first quarter of last year, said the Office of Federal Housing Enterprise. The report does not give dollar amounts, only percentage changes.
Two states - Massachusetts and Michigan - were the only two states to see declines in price, down 0.6 percent and 0.7 percent, respectively.
Despite all the bad news regarding the nation’s housing industry, there still are areas that are continuing to have double-digit price gains. The biggest increases came from Utah, at 17 percent, and Idaho and Montana, both at 12 percent.
The office’s Home Price Index measures changes in actual selling prices and appraisal values for refinanced homes. It excludes home that have mortgages higher than $417,000.
Another government report showed U.S. construction spending barely increased. Spending was up 0.1 percent in April, according to the Commerce Department’s latest figures on the economy. Overall, the country’s gross domestic product increased 0.6 percent in the first quarter.