Strongest Growth in U.S. Home Prices Since 2006
Home prices in the U.S. increased in January by the strongest margin in seven years, according to CoreLogic.
In January, national home prices, including distressed sales, increased 12 percent from the previous year
, marking the 23rd consecutive month of yearly increases. On a monthly basis, home prices grew by 0.9 percent. Severe weather conditions have hindered the recovering housing market
, analysts say. However, the weather didn't have a negative affective on home prices in January.
"Polar vortices and a string of snow storms did not manage to weaken house price appreciation in January," said Dr. Mark Fleming, chief economist for CoreLogic. "The last time January month-over-month and year-over-year price appreciation was this strong was at the height of the housing bubble in 2006."
Last month the National Association of Realtors reported
the national median existing-home price was $188,900 in January, increasing 10.7 percent year-over-year.
Including distressed sales, Louisiana, Nebraska and Texas surpassed their previous home price peaks in January, CoreLogic reports. Nationwide, 22 states and the District of Columbia are at or within 10 percent of their peak home price appreciation.
In the past year, home prices in seven states equaled or grew faster than the nation as a whole, including Nevada, California, Oregon, Michigan, Georgia, Arizona and Florida.
"Excluding distressed sales, all 50 states and the District of Columbia showed year-over-year home price appreciation for January," said Anand Nallathambi, president and CEO of CoreLogic. "Nationwide price growth like this should continue as the market comes out of hibernation for the spring buying season."
Looking ahead, CoreLogic forecasts home prices, including distressed sales, will increase 12.5 percent in February, compared to the previous year. They are expected to increase 0.7 percent on a monthly basis. More from the report:
- Including distressed sales, the five states with the highest home price appreciation were Nevada (+22.2 percent), California (+20.3 percent), Oregon (+14.3 percent), Michigan (+13.7 percent) and Georgia (+13.4 percent).
- Including distressed sales, only Mississippi (-0.3 percent) posted home price depreciation in January 2014.
- Excluding distressed sales, the five states with the highest home price appreciation were Nevada (+17.2 percent), California (+16.0 percent), Florida (+12.7 percent), Arizona (+11.5 percent) and Oregon (+11.4 percent).
- Excluding distressed sales, no states posted home price depreciation in January.
- Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to January 2014) was -17.3 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -13.3 percent.
- The five states with the largest peak-to-current declines, including distressed transactions, were Nevada (-40.1 percent), Florida (-36.4 percent), Arizona (-30.8 percent), Rhode Island (-30.5 percent) and West Virginia (-28.9 percent).
- Ninety-seven of the top 100 Core Based Statistical Areas (CBSAs) measured by population showed year-over-year increases in January 2014. The three CBSAs that did not show an increase were New Haven-Milford, CT, Philadelphia, PA. and Rochester, NY.