The end-of-year statistics keep pouring in and as analysts sift through the data the picture of 2013 is becoming clearer, and more positive. CoreLogic reports that U.S. home prices increased nearly 12% for the year ending in November, although improvement slowed considerably over the holidays. California and Nevada led the charge in overall gains, but data indicate that home prices increased every month in 2013, which made it a very strong year in the market’s ongoing recovery. Experts expect those gains to moderate in the coming year, which would be taken as a sign of healthy balance. For more on this continue reading the following article from TheStreet.
U.S. home prices paused in the holiday season, ticking up by 0.1% in the month of November, according to the latest report from Core Logic.
Year-over-year, prices were up 11.8%. Excluding distressed property sales, which sell at a steep discount, prices were up 0.3% month-over-month and 10.4% year-over-year.
The CoreLogic Pending Home Price Index predicts that prices will dip in December by 0.1%, to finish the year up 11.5%. That would mark the best annual gains since 2005.
"On a year-over-year basis, home prices have appreciated every month in 2013. Twenty-one states and the District of Columbia are now or within 10% of their peaks," said Anand Nallathambi, president and CEO of CoreLogic. "The outlook for 2014 looks a bit less robust as regulatory complexities and tight credit can be expected to cool the housing market."
Nevada and California led the gains among states, with home prices rising 25% and 21% respectively year-over-year in November.
Home prices more recently have shown signs of cooling down, particularly in the hottest markets. Many see the slowdown as a healthy sign for the housing recovery as the rapid appreciation had raised concerns of a bubble in some areas.
Prices are forecast to rise by about 5% on average in 2014.
This article was republished with permission from TheStreet.