WASHINGTON (12/2/15)--CoreLogic’s monthly home price index rose 6.8% on a year-over-year basis in October and 1% on a monthly basis, marking the 10th consecutive month of home-price appreciation (Economy.com Dec. 1).
While the index fell 6.1% lower than its peak in April 2006, it has climbed 39% higher than its post-recession trough, reached in early 2011.
“National house-price appreciation will extend its recent strength over the next several years,” said Kwame Donaldson, Moody’s analyst (Economy.com). “As the national labor market moves further toward full employment, wage growth will accelerate and first-time homebuyers will come into the market in greater numbers, boosting house prices.”
Nine states posted record-high home-price appreciation in October, including Colorado, Hawaii, Maine, Nebraska, New York, Oklahoma, Tennessee, Texas and Wyoming. Further, house prices only fell in two states: Louisiana (-0.2%) and Mississippi (-1.7%).
As for the largest U.S. metros, home prices in October accelerated the most in New York with a 2.1% gain, in Washington with a 0.9% gain, and in Los Angeles with a 0.8% gain.
Chicago and Atlanta were the only major metros tracked by CoreLogic to record declining prices.
“Credit standards will start to loosen after a period of extensive tightness in the wake of the last housing downturn, further supporting homebuyer demand,” Donaldson added. “The continued upward trend in rental rates will spur some renters waiting on the sidelines to consider purchasing a home.”