U.S. home prices continued to inch up in November, rising 0.1% compared to October, according to CoreLogic's Home Price Index (HPI) report.
Year over year, home prices were up 5.5%, according to the firm's data, which includes distressed sales.
Excluding distressed sales, prices were up 0.3% month over month and 5.3% year over year.
All states and the District of Columbia posted year over year gains, and 29 states were at or within 10% of their peak, according to the report. States where home prices reached new year-over-year highs in November included Colorado, North Dakota, Oklahoma, South Dakota, Tennessee, Texas and Wyoming.
‘After decelerating for most of the year, home price growth has been holding firm between a five percent and six percent growth rate for the last four months,’ says Sam Khater, deputy chief economist at CoreLogic, in a statement. ‘However, pockets of weakness are clear in Baltimore and Washington, D.C., and three of the top four states with the highest price appreciation are energy intensive and had been benefiting from the energy boom, which is currently receding as oil prices trend downward. These states – Texas, Colorado and North Dakota – may see some downward pressure on prices in 2015.’
Anand Nallathambi, president and CEO of CoreLogic, says he thinks the slowdown in home price appreciation is a ‘temporary lull.’
‘[Although] the CoreLogic HPI Forecast shows a slight dip in prices next month, we believe that prices will be up a year from now, as continued economic growth fuels buyer confidence and their willingness to purchase a home and invest in their future,’ Nallathambi says.
CoreLogic is forecasting that home prices, including distressed sales, decreased 0.1% in December compared to November.
States with the highest home price appreciation in November, year over year, were Michigan (9.0%), Colorado (8.8%), Texas (8.5%), North Dakota (7.9%) and Nevada (7.9%).
States with the highest home price appreciation, year over year, were Massachusetts (8.6%), Texas (7.9%), Colorado (7.8%), North Dakota (7.8%) and South Dakota (7.5%).
CoreLogic says its HPI has a 2% error margin.
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