A recent bit of research done by an independent federal agency, the Office of Federal Housing Enterprise Oversight (restructured and renamed the Federal Housing Finance Agency earlier this month) indicates that generalizations about an overall housing market downturn are inaccurate. Severe economic woes are affecting isolated markets throughout the country, leaving 63% of the US population living in areas where home values have been resilient.
The Office of Federal Housing Enterprise Oversight’s (OFHEO) House Price Index (HPI) tells a different story than the media is reporting. Citing data from home sales and appraisals for refinancing, OFHEO reported in May that 35 states saw a positive home value price change in the first quarter of 2008. In addition, 164 MSAs showed positive first quarter appreciation when compared to the same quarter of 2007.
Just because four states are still falling, and 11 other states continue to try and stabilize doesn’t mean the entire market will continue to take the plunge.Here's a short summary of the agency's white paper.