Home prices have posted the biggest annual increase in almost seven years. Learn more about this and other real estate market trends.
U.S. home prices rose nearly 10 percent in January 2013, compared to January 2012, according to the latest real estate market trends reported today by CoreLogic. The 9.7 percent rise represents the biggest year-over-year increase since April 2006.
Home prices rose 0.7 percent in the month of January, compared to December 2012, for the 11th consecutive monthly increase, according to the Core Logic HPI report. Excluding distressed sales, home prices rose 1.8 percent in the month of January.
The upward real estate market trends are expected to continue into February. CoreLogic, a residential property analytics and services firm, predicts an 11.3 percent annual gain in home prices in February and a 1.8 percent monthly gain.
“The HPI showed strong growth during the typically slow winter season,” Mark Fleming,” chief economist for CoreLogic, said in a statement. “With these gains, the housing market is poised to enter the spring selling season on sound footing.”
Real estate market trends are improving across the nation, according to Fleming, and all states but Delaware and Illinois saw home prices increase in January. Prices in 15 U.S. states are within 10 percent of their peak market values.
“Many states across the western U.S. and along the East Coast saw average price gains of more than 6 percent, which is likely to boost home sale activity into the first half of 2013,” Anand Nallathambi, president and CEO of CoreLogic, said in a statement.
In other real estate market trends, the pace of home sales accelerated in January. Will the pace continue?
Five states – Arizona, Nevada, Idaho, California and Hawaii - experienced home price appreciation of 14 percent or more. Overall prices remain 26.4 percent below their April 2006 peak. The gap shrinks to 19.9 percent when distressed sales are excluded. The state with the largest deficit is Nevada, which remains 51.6 percent below its peak. Other states with large gaps include Florida, down 43 percent, Arizona, 38.9 percent below, Michigan, down 37.4 percent, and Rhode Island, which has a 35.5 percent gap.
Despite positive real estate market trends, home builder confidence dipped in February.