In September, home prices rose 0.9%, declining 7.6% year over year, First American said in its Real House Price Index. According to the company, unadjusted house prices sit 8.1% above the housing boom peak.
Consumer buying power, which measures the influence of income and interest rate changes on house-hold spending, increased by 0.2% between August and September, rising 15.8% year over year.
When consumer house-buying power is factored in, home prices are actually 42.2% below their 2006 peak and 18.8% below prices from January 2000.
Although housing affordability improved during the month, Mark Fleming, First American’s chief economist said the growth just wasn’t enough.
“Two of the three key drivers of the Real House Price Index,…