CoreLogic: Home Prices Dipped Slightly In December

Posted by Patrick Barnard on February 03, 2015 No Comments
Categories : Residential Mortgage

Home prices dipped 0.1% in December compared to November, but prices were up 5% compared to December 2013, according to CoreLogic's Home Price Index report.

This includes distressed sales, such as short sales and real estate owned transactions.

While almost all states saw year-over-year increases in home price appreciation in December, three showed depreciation: Maryland (-0.7%), Vermont (-0.9%) and Connecticut (-2.2%).

Excluding distressed sales, home prices increased 0.1% compared to November and increased 4.9% compared to December 2013.

CoreLogic is forecasting that home prices will increase 0.1%, month over month, from December to January.

‘For the full year of 2014, home prices increased 7.4 percent, down from an 11.1 percent increase in 2013,’ says Sam Khater, deputy chief economist at CoreLogic, in a release. ‘Nationally, home price growth moderated and stabilized at 5 percent the last four months of the year. The moderation can be clearly seen at the state level, with Colorado, Texas and New York at the high end of appreciation, ending the year with increases of about 8 percent. This contrasts with previous appreciation rates in the double digits – for instance, Nevada and California which experienced increases of more than 20 percent earlier in 2014.’

Anand Nallathambi, president and CEO of CoreLogic, says that because home price appreciation ‘took a pause in November and December â�¦ we expect a slow start to 2015.’

‘As the year progresses, we expect upward pressure as low inventories and more first-time buyers drive up home prices,’ he adds.

States that saw the highest year-over-year home price appreciation, including distressed sales, in December included Colorado (8.4%), Texas (7.8%), New York (7.6%), Nevada (7.3%) and Michigan (7.2%).

Excluding distressed sales, states that saw the highest home price appreciation were New York (8.0%), Colorado (7.8%), Massachusetts (7.2%), Texas (7.1%) and Nevada (7.1%).

As of December, home prices, including distressed sales, were within 13.4% of their peak in 2006. Excluding distressed sales, prices were within 9.6% of their peak.

During the past five years, home price appreciation, including distressed sales, jumped 18.9%.

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