U.S. Home Prices Up 11.8 Percent, Growth Slowing
Home prices in the U.S. increased 11.8 percent last November, compared to the previous year, representing the 21st consecutive month of yearly increases, according to the latest report from CoreLogic.
The increase fell short of CoreLogic's predictions last month, showing a 12.2 percent yearly increase for November home prices. However, CoreLogic expects 2013 to show healthy home price growth.
"Our pending HPI projects that home prices will grow by 11.5 percent for the full year 2013," Dr. Mark Fleming, chief economist for CoreLogic, said in the report. "That will make 2013 the best year for home-price appreciation since 2005."
Among the states, Nevada led with with prices increasing 25.3 percent, followed by California with a 21.3 percent yearly increase.
The monthly growth momentum is slowing down. Compared to the previous month, home prices in November increased 0.1 percent
, after increasing by just 0.2 percent in October.
In fact, CoreLogic expects December home prices, including distressed sales, will show a 0.1 percent month-over-month fall. The December figure is expected to show a 11.5 percent precent yearly increase, demonstrating slower growth.
Going forward, CoreLogic expects slower yearly price appreciation in 2014.
"On a year-over-year basis, home prices have appreciated every month in 2013. Twenty-one states and the District of Columbia are now at or within 10 percent of their peaks," Anand Nallathambi, president of CoreLogic, said in the report. "The outlook for 2014 looks a bit less robust as regulatory complexities and tight credit can be expected to cool the housing market."
More from the report:
November HPI for the Country's Largest CBSAs by Population (Ranked by Single Family, Including Distressed):
- Including distressed sales, the five states with the highest home price appreciation were Nevada (+25.3 percent), California (+21.3 percent), Michigan (+14.4 percent), Arizona (+13.5 percent) and Georgia (+13.3 percent).
- Including distressed sales, the only state to show depreciation was Arkansas (-1.1 percent).
- Excluding distressed sales, the five states with the highest home price appreciation were Nevada (+21 percent), California (+17.6 percent), Idaho (+12.4 percent), Florida (+12.4 percent) and Arizona (+11.7 percent).
- Excluding distressed sales, no states posted home price depreciation in November.
- Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to November 2013) was -17.6 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 (-40.5 percent), Florida (-37.3 percent), Arizona (-31.4 percent), Rhode Island (-29.4 percent) and Illinois (-24.5 percent).
- 96 of the top 100 Core Based Statistical Areas** (CBSAs) measured by population showed year-over-year increases in November 2013.