Photo: Larry Lamsa/Flickr
Led by double-digit gains in Colorado and Washington, US single-family home prices in September were higher than they were that month a year ago, said global real estate analytics firm CoreLogic today.
On a national level, home prices increased 6.4 percent year-over-year in September, according to CoreLogic’s Home Price Index (HPI), and 0.6 percent from August. The CoreLogic HPI, based on over 30 years of following home resales, pulls data from public records and real estate databases.
“After nearly 10 years of very high home price volatility, home price increases have been remarkably stable for the last 15 months,” said Sam Khater, CoreLogic’s deputy chief economist, in a statement. He noted year-over-year increases during this period have ranged between 4.8 percent and 6.5 percent. CoreLogic now expects home prices to climb by 4.7 percent between September 2015 and September 2016.
The two leading states this September, Colorado and Washington, posted year-over-year price gains of 10.4 percent and 10 percent respectively. They also led the way in CoreLogic’s previous index, released last month. And also mirroring the August index, Mississippi once again saw a year-over-year price drop of 0.9 percent. However, this time around it had company: Louisiana, where year-over-year prices were down 0.1 percent.
“Home price volatility is now back to the long-term trend prior to the boom and bust which is a good barometer of the market’s stability and health,” said Khater.
Although homeowners may welcome the current rate of price appreciation, the report noted chances are good that short-term overvaluation will continue, generating risks for the housing market as it does so. In response to this, Anand Nallathambi called for action. “More has to be done to expand inventories if we are going to address the emerging affordability crisis especially in hot markets like California and Colorado,” he said.