IRVINE, Calif. (11/4/15)--Home prices climbed 6.4% on a year-over-year basis in September, according to CoreLogic’s monthly house price index, released Tuesday (Economy.com Nov. 3).
Monthly home prices rose 0.6%, marking the ninth straight monthly increase. Prices also were 39% higher than their lowest point on record--reached in March 2011--and 6% lower than their record highs, set in April 2006.
“Slowly but surely, the U.S. housing market is gaining traction,” said Kwame Donaldson, Moody’s analyst (Economy.com). “Combined sales of single-family and condo/co-op homes exceeded 6 million annualized in July, the highest level since 2007. Inventory-to-sales ratios for existing single-family and condo/co-op homes are at 4.5 months of sales, the lowest ratios since 2005, while the inventory-to-sales ratio for new homes is not much higher.”
Home prices posted record highs in seven states in September, including Colorado, Hawaii, Nebraska, New York, South Dakota, Tennessee and Texas. Prices remain more than 20% below peak values in five states, however, including Nevada, Florida, Arizona, Rhode Island and Maryland.
“House price growth will continue to move in the right direction over the next couple of years, but at a somewhat slower pace than in the recent past,” Donaldson said. “An increasingly tight national labor market, faster wage growth, and more relaxed credit standards from lenders will keep housing demand on the upswing.”