Real Estate Marketing & Beyond
The latest home price index from CoreLogic shows the annual price of residential property rose by 11.8% in the year ending November 2013, the 21st consecutive monthly year on year increase. On a monthly basis property prices increased by 0.1% showing the rate of growth is slowing down.
It's a slightly different story if distressed sales are taken out of the picture as real estate prices rose by 0.3% in November last year, and by 10.4% year on year. Figures for December last year, including distressed sales are expected to show a 0.1% decline, but it's predicted that year on year they will have increased 11.5%. If distressed sales are excluded for December then home prices are expected to have increased by 0.2% month on month, and by 10.6% compared to December 2012. The slight decline in figures for December is expected due to the holiday season, but it's anticipated that the growth for the whole of last year will be an impressive 11.5%, making it the best year since 2005.
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According to the article in Property Wire, prices in 21 states and the District of Columbia have now reached or are within 10% of their peak prices, although the outlook for this year looks less spectacular as tighter credit conditions are anticipated to cool the housing market.
The five states with the highest home price rises were Georgia with prices up by 13.3%, Arizona by 13.5%, Michigan by 14.4%, California where prices rose by 21.3% and Nevada by 25.3%. Just one estate shows a price depreciation, and this was Arkansas where prices dropped by 1.1%. If distressed sales are excluded then the top five states for home price appreciation were Arizona with prices up by 11.7%, Florida and Idaho by 12.4%, California by 17.6% and Nevada by 21%. When distressed sales are taken out of the equation then no states showed house price depreciation for November last year.
In the national house price index, if distressed sales are taken into account the change between April 2006 and November 2013 was -17.6%. If distressed sales are excluded then the change for the same timeframe was -13.3%. The five states showing the largest price declines for this period were Illinois where prices declined by -24.5%, Rhode Island at -29.4%, Arizona at -31.4%, Florida at -37.3% and Nevada at -40.5%. Out of the top 100 Core Based Statistical Areas as measured by population, 96 showed increases for the year ending November 2013.
