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Home values close in on 2006

By Judy Martel ·
Tuesday, September 3, 2013
Posted: 4 pm ET

A new report shows home values were up 12.4 percent in July from a year earlier, and within 18 percent of their peak prices.

mortgages-83x123"Home prices continue to climb across the nation in July, with markets hit hardest during the downturn leading the way," Anand Nallathambi, president and CEO of CoreLogic, said in a release announcing the results of the report. "Nationally, home prices are now within 18 percent of their peak levels reached in April of 2006."

July marks the 17th consecutive month of annual gains for home values. States with plummeting values during the housing crash have seen double-digit gains in the past year. In Nevada, home prices have risen 27 percent for the year; California is up 23 percent, and Arizona has seen gains of 17 percent.

Price gains have resulted partly from lack of inventory and partly from fewer distressed properties dragging down the market. Distressed properties are those sold through foreclosure or short sale. According to the report, when distressed sales are excluded, home prices increased on a year-over-year basis by 11.4 percent in July compared to a year ago.

Nationwide, the second half of the year may see slower growth in prices, according to CoreLogic. That's in part due to seasonal demands and higher mortgage rates. August 2013 home prices, including distressed sales, are expected to increase by 12.3 percent on a year-over-year basis from August 2012 and rise by 0.4 percent on a month-over-month basis from July of this year.

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1 Comment
October 02, 2013 at 8:52 pm

There is a lot of pent up energy on the buying side that we have not seen yet. Maybe with some of the energy prices falling a bit will contribute a small but definite percentage of seasoned buyers. Once this happens, I'm sure it will, a new generation of home buyers will hit the markets.