Home prices made double-digit gains in 2013, posting the highest annual rate of increase since 2005, according to CoreLogic’s latest housing report, released Tuesday. Ten states and the District of Columbia reached new all-time price peaks last year.
“We expect the rising prices to attract more sellers, unlocking this pent-up supply, which will have a moderating effect on prices in 2014,” says Mark Fleming, chief economist for CoreLogic.
CoreLogic’s latest report echoed an earlier report from the National Association of REALTORS® that showed a strong gain in home prices in 2013. The median sales price for all of 2013 was $197,100 in December, 11.5 percent above the 2012 median price, according to the National Association of REALTORS®’ December existing-home sales report.
December Existing-Home Sales Rise Strongest in Seven Years
But CoreLogic’s report showed that home prices have eased slightly the last three months. Home prices dropped by 0.1 percent from November to December, and the year-over-year price increase has slowed, the report says. CoreLogic’s report does not adjust for seasonal patterns.
Nevertheless, “the healthy and broad-based gains in home prices in 2013 help set the stage for the continued recovery in the housing sector in 2014,” says Anand Nallathambi, president and CEO of CoreLogic. “After six years of fits and starts, we can now see a clearer path to a durable recovery in single-family residential housing across most of the U.S.”
The following states had the highest home-price appreciation, including distressed sales, according to CoreLogic:
- Nevada: 23.9%
- California: 19.7%
- Michigan: 14%
- Oregon: 13.7%
- Georgia: 12.8%
SOURCE: Realtor Magazine