As you can guess by the title, the Dubuque area housing market seems to be holding steady as evidenced by the latest round of figures posted by FHFA.gov (a division within Housing & Urban Development, a.k.a. HUD). The quarterly report, which I make a habit of reporting on, was released on November 24th (just in time for Thanksgiving!) and shows that the third quarter of 2010 was not be best of markets nationally – American housing lost approximately 1.6% of value over the 3rd Quarter of 2010, with an annual decline over the last year of about 3.2%.
WASHINGTON, DC – U.S. house prices fell in the third quarter of 2010 according to the Federal Housing Finance Agency’s (FHFA) seasonally adjusted purchase-only house price index (HPI). The HPI, calculated using home sales price information from Fannie Mae and Freddie Mac-acquired mortgages, was 1.6 percent lower on both a seasonally adjusted and unadjusted basis in the third quarter than in the second quarter of 2010. Over the past year, seasonally adjusted prices fell 3.2 percent from the third quarter of 2009 to the third quarter of 2010.
As a state, Iowa is pretty much hanging out in the middle of road, ranking #24 with a 2.2% loss in values over the last year. The best performing state (which really isn’t a “state”) is reported as being the District of Columbia (Washington D.C.), boasting a 5.3% gain over the last year. Hmmm, I wonder if the continuing enlargement of the federal government is a factor in D.C.’s good fortune?
As for the other end of the spectrum, it looks like it hasn’t been a good year in potatoes as Idaho comes in last among the states with a 9.8% loss over the last year. Here’s a map showing the state-by-state performance since the start of the 4th Quarter in 2009…
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Further breaking things down, and truly the reason for this particulat post, is the performance of our local market area. The Dubuque MSA (Metropolitan Statistical Area) shows a scant .13% gain over the third quarter in 2010. Over the last year we’ve been reported as having a still-relatively small loss in value by .24%. Here’s a quick comparison of Dubuque’s performance versus a couple of other local markets and the single best and worst performing markets…
So, if you bought at $100,000 house on July 1, 2010 your home’s approximate value is $99,760, at least accoridng to FHFA.gov. You probably spent more on than that $240 loss on Christmas presents already. Stick with it – the numbers will be turning in your favor.
If you bought at $100,000 home on December 1, 2009, you’ve gained all of $130 in your home’s value. The one-year ownership figures look much better when you factor in the reduction in principle you’ve created. If you took out a 3.5% down ($96,500 borrowed) 30-year FHA loan at 5.1% interest rate to buy the home, you’ve been paying down the principal all the while and now owe only $95,100 which means you’re still ahead by $1,530 in combined appreciation and principle reduction- and that’s BEFORE you consider the mortage interest tax deduction you likely qualify for. Good times, YES?