U.S. average home prices rose 7.71 percent during the first three months of 2004 from a year earlier on robust demand and low mortgage rates, the Office of Federal Housing Enterprise Oversight said on Tuesday.
The pace of home appreciation slowed considerably from the fourth quarter of 2003, which posted an upwardly revised 8.13 percent year-on-year increase, OFHEO said.
"This moderation in growth of house prices is welcome because continued price jumps like those of the fourth quarter last year would raise the potential for declines later on," Patrick Lawler, OFHEO's chief economist said, in a statement.
Home appreciation would increase 3.84 percent for 2004, if it continues at its first-quarter pace, the government agency, which regulates Fannie Mae and Freddie Mac, said.
Annualized appreciation during the first quarter slowed considerably from the 14.85 percent rise for the fourth quarter.
OFHEO tracks home prices based on mortgage data from the two mortgage finance giants.
Home prices in Hawaii, Nevada, Rhode Island, the District of Columbia and California increased the most during the past 12 months. The smallest increases were in Utah, Texas, Indiana, Colorado and Alabama, OFHEO said.
For the first quarter, average home values in five states, Vermont, Alaska, North Dakota, South Dakota, Iowa and Nebraska, fell from fourth-quarter levels. In the fourth quarter, no states experienced price decreases from the third-quarter 2003, it said.