In October property prices in the US increased by just 0.2% compared to September and according to the latest data from CoreLogic are now up by 12.5% year on year. This means that property prices have increased 20 consecutive months, and if distressed sales were excluded from this data then prices would have been up by 0.4% compared to the previous month, and by 11% year on year.
According to the article in Propertywire.com, prices for November, including distressed sales are expected to remain the same as October. The projected year on year increase for November is 12.2%. These figures show how house price increases have slowed which is only to be expected at this time of year. Even though the year on year appreciation rate for October was strong, the month on month increase was only just positive. The rate of growth is expected to slow even further during the remaining part of the year.
Housing market experts feel the slowdown is positive and point out that nearly half the states within the US have seen housing prices increase to within 10% of historical price highs as the real estate market continues to stabilize. This slowing down in house price increases was fully anticipated, especially after the housing market saw strong gains during the main selling seasons of spring and summer. However large price gains in some markets, combined with higher interest rates could mean some buyers are being priced out of the market. By the end of October, just 1.88 million homes were listed for sale, the lowest figure since March.
States that saw the highest rate of property price increases were Arizona which was up by 14%, Michigan at 14.1%, Georgia at 14.2%, California at 22.4% and Nevada at 25.9%. Just one state showed depreciation in home values, and this was New Mexico at -0.5%. All these figures include distressed sales. If this distressed sales are excluded then these figures change slightly and the five states with the highest rate of home price increases would be New York with 12.4%, Florida at 13%, Utah at 13.3%, California at 18.5% and Nevada at 22.5%.
In October, all but four of the top one hundred Core Based Statistical Areas showed year-on-year increases. The CoreLogic House Price Index evaluates the market based on prices, property type and loan type, and distress sales as well as the time between sales. It assesses and tracks increases and decreases in sale prices for the same properties over time in order to provide a more accurate view of trends within the housing market.