Home prices grew in the first quarter, but at the slowest pace in 10 years, according to a government report released today.
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.