13 States Soar to New Home-Price Highs
Daily Real Estate News, Wednesday August 6, 2014
More than a dozen states saw home prices accelerate in June to record-level highs, according to CoreLogic’s latest Home Price Index, which dates back to January 1976.
Are Price Gains Sustainable?
Those states are:
- District of Columbia
- North Dakota
- South Dakota
Year-over-year home prices were up in every state, except Arkansas, which posted a 0.4 percent decrease in home prices in June, CoreLogic reports. But excluding distressed sales, all states experienced year-over-year rises in prices, according to the report.
Michigan led the nation with the highest home appreciation year-over-year at 11.5 percent, followed by California with an 11.3 percent rise and Nevada at 11.1 percent.
“Home prices are continuing to rise fueled by ongoing tight supply, low rates, and aggressive investor buying on the East and West Coasts,” says Anand Nallathambi, president and CEO of CoreLogic. “The expected surge in the number of homes for sale has not materialized to date as many home owners are staying put and waiting for better economic times and higher prices in the future.”
Overall, CoreLogic’s index shows that nationwide home prices rose 7.5 percent year-over-year in June, marking the 28th consecutive month for year-over-year increases. Still, including distressed sales, nationwide home prices remain 12.9 percent below the peak reached in April 2006. On a month-over-month basis, home prices nationwide ticked up modestly at 1 percent in June.
“Home price appreciation continued moderating in June with its slight month-over-month increase,” says Mark Fleming, chief economist for CoreLogic. “This reversion to normality that we are finally experiencing is expected to continue across the country and should further alleviate concern over diminishing affordability and the risk of another asset bubble.”