While home price gains in the last year or more have been significant, new data shows just how appreciable those gains have been, and also that they could continue to rise in the near future.
At the end of January, the average home price nationwide including distressed sales was up 9.7 percent from the figure seen a year prior, marking the largest such increase on an annual basis since April 2006, as well as the 11th straight month in which home values rose by that metric, according to new data from the real estate tracking firm CoreLogic. However, excluding distressed properties, the improvements were slightly diminished annually, rising only 9 percent during the year.
On a month-over-month basis, though, things were somewhat different, the report said. Housing prices excluding distressed properties rose 1.8 percent from December but only 0.7 percent when factoring in those troubled homes.
“Home prices continued to gather steam across a broad swath of the country in January, continuing the positive trend we saw during most of 2012,” said Anand Nallathambi, president and CEO of CoreLogic. “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.”
In all, only two states nationwide saw home prices drop, and when they did, the decline was marginal, the report said. Illinois saw values dip 0.4 percent, while Delaware’s fell 0.1 percent. On the other hand, Arizona had the single biggest annual increase at 20.1 percent, with Nevada (17.4 percent) and Idaho (14.9 percent) rounding out the top three. California and Hawaii were also both above 14 percent.
Further, the company projects similar improvements will take place in February, the report said. Including distressed sales, it seems those prices will rise 9.7 percent annually, though they will likely fall 0.3 percent from January because of seasonal market shifts. However, when leaving those problematic properties out of the equation, prices will rise 11.3 percent annually and 1.8 percent month-over-month.
As the housing market continues to take steps forwards and prices rise, it will likely encourage more owners to put their homes up for sale and rise to meet the pent-up demand from buyers nationwide that has led some to become a little frustrated by the process.