By Manuel Gutierrez, Consulting Economist to NKBA

The overall pace of price gains has increased in each of the past three months.

• Compared to a year ago, January house prices are 19.2 percent higher.
• House prices today are rising at their fastest pace  since such data was first collected in the 1980’s, with annual increases nearly 5 percent higher than during the housing boom fifteen years ago.
• By market, annual price gains in many large metros are increasing by an even faster clip, led by Phoenix at +33 percent, Tampa 31 percent and Miami 28%.
• Northern area metros like Washington, DC, Minneapolis and Chicago are not faring as well, but are still showing year-over-year price gains of 11-12 percent.
• As mortgage rates approach 5 percent, the expectation is for home demand and price pressures to ease.

“Home prices show sharpest rise in six months.”