home prices are still 18 percent below their peak, and interest rates are low.
Chicago, IL (PRWEB) February 06, 2014
The December Corelogic Home Price Index report was released today, revealing national home price changes on a monthly and yearly basis. CF Funding is excited to hear that home values continue to increase, as year over year home prices showed an 11 percent increase (including distressed sales) as of December 2013. Even excluding distressed sales, the year over year increase was 9.9 percent. As of November, home prices have increased on a year-over-year basis for 22 months in a row now.
On a monthly basis, there was a slight decrease in December of -0.1 percent (including distressed sales). However, when excluding distressed sales CF Funding saw an increase of 0.2 percent. Dr. Mark Fleming, chief economist for CoreLogic, stated that “10 states and the District of Columbia reached new all-time price peaks [in 2013]. CF Funding expects the rising prices to attract more sellers, unlocking this pent-up supply, which will have a moderating effect on prices in 2014.” This is good news for potential homebuyers in 2014.
CF Funding would like to remind homebuyers that rising prices should not be a discouraging factor, as home prices are still 18 percent below their peak, and interest rates are low. Home prices are expected to dip in the next HPI report (January’s results), about 0.8 percent month over month, according to Corelogic.
The 5 states showing the largest home price increases from December 2012 to December 2013 were Nevada, California, Michigan, Oregon, and Georgia. The 5 states with smallest home price increases were Arkansas, New Mexico, Mississippi, Kentucky, and Wisconsin. All 50 states showed some home price appreciation in December’s results. The Chicago area showed about a 12.5 percent increase for single family home prices year-over-year, and 95 out of the 100 largest metropolitan areas showed year-over-year increases as well.
Anand Nallathambi, president and CEO of CoreLogic, expressed a positive outlook on the housing industry for 2014 in the December HPI report. “The healthy and broad based gains in home prices in 2013 help set the stage for the continued recovery in the housing sector in 2014. After six years of fits and starts we can now see a clearer path to a durable recovery in single family residential housing across most of the U.S.” CF Funding agrees with this statement expects further housing recovery to come in 2014. As rising prices make more home inventory available, homebuyers will have more to choose from in 2014.