Well, leave it to the Feds to finally jump on board with reality.
The Office of Federal Housing Enterprise Oversight (OFHEO), published their most recent quarterly data (.pdf). CNN/Money ran an article about the data and what markets are most affected.
It is a shock to see that Ann Arbor, Michigan had the biggest drop (1.28%) of any metro area! I’m still trying to figure out an explanation for this. I know that our Avg Sales Price is down nearly 3.9% since last year, but Avg Sales Price is not the same as what OFHEO studies.
OFHEO’s House Price Index is published on a quarterly basis and tracks average house price changes in repeat sales or refinancings of the same single-family properties. OFHEO’s index is based on analysis of data obtained from Fannie Mae and Freddie Mac from more than 31 million repeat transactions over the past 31 years. OFHEO analyzes the combined mortgage records of Fannie Mae and Freddie Mac, which form the nation’s largest database of conventional, conforming mortgage transactions. The conforming loan limit for mortgages purchased in 2006 is $417,000. [Todd’s emphasis]
Any suggestions out there? Is it simply that A2 has that many non-conforming loans? What the deuce?