Average Price of Homes Up 12%

REALTOR® Magazine Online
The pace of residential price gains slowed in some hot markets in the New England and Pacific states over the 12 month-period ended Sept. 30, but the average U.S. home price still rose 12 percent during this period, according to the Office of Federal Housing Enterprise Oversight.

Although some analyses suggest that the housing boom will slow as mortgage interest rates continue to rise, the regulator's data indicates that appreciation rates still were very strong during the third quarter, said OFHEO chief economist Patrick Lawler in a statement.

However, Lawler said it remained to be seen whether an upward trend in borrowing costs after the third quarter ended would impact appreciation. "To the extent that those increases may have affected prices, those effects will be evident in future quarters," he said.