The February 2021 First American Real House Price Index (RHPI) indicated that while house prices increased 1.6 percent in February compared with January, prices declined 1.3 percent year-over-year.
“In February 2020, nominal house prices soared and mortgage rates increased, offsetting any affordability benefit from an increase in income levels. As a result, the RHPI increased 1.6 percent over January, meaning affordability declined,” First American Chief Economist Mark Fleming said in a release “Yet, compared with one year ago, affordability improved 1.3 percent, according to the RHPI. Nationally, affordability is likely to wane further in March due to the modest rise in mortgage rates and faster house price appreciation outpacing gains in household income.”
The five states with the greatest year-over-year increase in the RHPI were Arizona (+8.4 percent), Wyoming (+8.4 percent), Vermont (+6.2 percent), Washington (+5.4 percent), and Mississippi (+5.3 percent).
The five states with the greatest year-over-year decrease in the RHPI were Iowa (-4.4 percent), Massachusetts (-3.5 percent), Illinois (-3.5 percent), New York (-3.4 percent), and California (-3.3 percent).
According to First American, the five markets with the greatest year-over-year increase in the RHPI were Kansas City, Mo. (+12.1 percent), Phoenix (+9.7 percent), Memphis, Tenn. (+9.0 percent), Hartford, Conn. (+8.9 percent), and Tampa, Fla. (+8.0 percent).
The five markets with the greatest year-over-year decrease in the RHPI were San Francisco (-10.0 percent), San Jose, Calif. (-7.8 percent), Miami (-5.8 percent), Boston (-5.7 percent), and Providence, R.I. (-4.1 percent).