MoreAverage U.S. house prices for the second quarter rose 6.48 percent from the same period a year earlier, the Office of Federal Housing Enterprise Oversight said.
Measured nationally, the rate of house price appreciation has slowed on an annual basis for the last five quarters, OFHEO's report said. House prices gained 1.88 percent from the previous quarter, OFHEO said in a quarterly survey of home values.
Despite an uncertain recovery from recession in the United States, the U.S. housing industry has boomed as mortgage interest rates scrape 30-year lows.
Among the larger metropolitan areas, only San Jose, Calif., the heart of Silicon Valley, experienced a decline over the 12-month period, an annual drop of 3.72 percent. However, San Jose home prices rose 1.65 percent over the previous quarter.
The larger area with the greatest one-year increase was Yolo, Calif., where values rose 15.36 percent. Rounding out the top five gainers were Barnstable, Mass., Santa Barbara, Calif., Nassau, N.Y., and Fort Lauderdale, Fla.
Housing market watchers are concerned prices could fall rapidly in areas where values have soared. OFHEO said price declines in some locations that have gone through economic downturns -- such as Silicon Valley -- are much more moderate than in such situations in the past.
At the same time, the regulator said it could not rule out bigger local price declines in the future.
