National home prices are expected to rise 5.2% from August 2014 through August of next year, according to CoreLogic’s latest Home Price Index Report.
The projected upswing in home prices follows a 6.4% increase in home prices, including distressed sales, in August 2014 compared to August 2013.
On a month-over-month basis, national home prices increased by .3% in August compared to July data. Excluding distressed sales, home prices were up .3% month over month in August 2014.
“Home prices continue to rise, albeit more slowly, across most of the U.S. major metropolitan areas such as Riverside and Los Angeles, Calif., and Houston continue to lead the way with strong price gains buoyed by tight supplies and a gradual rebound in economic activity,” says Anand Nallathambi, president and CEO of CoreLogic, in a written statement.
Excluding distressed sales, 49 states and the District of Columbia showed year-over-year home price appreciation in August. And 32 states, including the District of Columbia, are at or within 10% of their peak.
Despite modest gains in August, home prices nationwide remain 12.1% below their peak, which was set in April 2006. Home prices, excluding distressed sales, were still 8.6% below the peak. Distressed sales are composed of short sales and real estate owned (REO) transactions.
“The pace of year-over-year appreciation continues to slow down as real estate markets find more balance,” says Mark Fleming, chief economist for CoreLogic. “Home price appreciation reached a peak of almost 12% year-over-year in October 2013 and has since subsided to the current pace of 6%. Continued moderation of home price appreciation is a welcomed sign of more balanced real estate markets and less pressure on affordability for potential home buyers in the near future.”
Access the full report here.
Written by Cassandra Dowell