West Leads Nation with Double Digit Price Increases

News

Once again a report on home price changes indicates that appreciation
has not yet slowed.  CoreLogic issued a
report on its Home Price Index for December of Tuesday which indicates a
pick-up in monthly increases.

The index shows prices nationwide, including distressed
sales, rose 0.8 percent from November to December compared to a 0.5 percent
change from October to November. On an annual basis there was a 6.3 percent
gain, the same as the November 2014 to November 2015 pace.

 

 

“Nationally, home prices have been
rising at a 5 to 6 percent annual rate for more than a year,” said Dr.
Frank Nothaft, chief economist for CoreLogic. “However, local-market
growth can vary substantially from that. Some metropolitan areas have had
double-digit appreciation, such as Denver and Naples, Florida, while others
have had price declines, like New Orleans and Rochester, New York.”

Among the states the highest annual
appreciation was again in Colorado at 10.4 percent followed by two other
western states, Washington and Oregon at 10.3 and 9.1 percent
respectively.  Three states posted
declines; Louisiana (2.9 percent), Mississippi (2.8 percent), and New Mexico
(0.1 percent).

Among large metropolitan areas the
largest annual increases were scored by San Francisco at 12.6 and Denver at
11.4 percent.

The CoreLogic HPI Forecast indicates
that home prices will increase by 5.4 percent on a year-over-year basis from
December 2015 to December 2016, and on a month-over-month basis home prices are
expected to increase 0.2 percent from December 2015 to January 2016. The
CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI
and other economic variables. Values are derived from state-level forecasts by
weighting indices according to the number of owner-occupied households for each
state.

“Higher property valuations appear
to be driving up single-family construction as we head into the spring.
Additional housing stock, especially in urban centers on the coasts such as San
Francisco, could help to temper home price growth in the longer term,”
said Anand Nallathambi, president and CEO of CoreLogic. “In the short and
medium term, local markets with strong employment growth are likely to
experience a continued rise in home sales and price growth well above the U.S.
average.”

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