The latest OFHEO House Price Index (HPI) ranks California 46th in terms of year-over-year home price appreciation (1.19%) and measures Q1 2007 appreciation at a negative 0.84%. For the San Francisco/San Mateo/Redwood City MSAD, year-over-year appreciation measured 1.32% with appreciation of 0.35% in the first quarter of 2007, a marked difference from last year’s report of 14.60% year-over-year appreciation and 1.15% in the first quarter (0.17% less than the full year gain).
Keep in mind, however, that the HPI is based on data from repeat single-family home sales, or refinancings, that involve conforming mortgages (under $417,000). Data from transactions involving either condominiums or non-conforming loans (two major components in the San Francisco market) are excluded from the Index.
As always, it’s just another data point and perhaps most meaningful relative to itself (rather than in the absolute). And no, we don’t have any idea why they chose red to denote the highest positive four-quarter appreciation (10%+) and dark blue the lowest (-1.0% to 2.0%).
∙ OFHEO House Price Index: Q1 2007 (pdf) [ofheo.gov]
∙ OFHEO Reports 1.15% First Quarter Appreciation For San Francisco [SocketSite]