Daily Real Estate News  |  March 2, 2007  |   House-Price Appreciation Adjusts to Historical Norms
Average U.S. home prices rose only 1.12 percent in the fourth quarter of 2006, compared with 3.03 percent in the fourth quarter of 2005, according to a report by the Office of Federal Housing Enterprise Oversight.

During 2006, home prices rose by 5.9 percent, compared to a 13.2 percent increase in 2005.

"This suggests that house-price appreciation is, for now, more in line with historical norms," OFHEO Director James B. Lockhart said of the data in a statement.

OFHEO said that in the second half of 2006 the continued strength in the economy and declining interest rates for borrowers prevented a more severe fall in the housing market.

Source: Associated Press, Marcy Gordon (03/02/07)