IRVINE, Calif. (2/4/15)--Punctuated by two months of tepid price growth in November and December, home-price appreciation slowed considerably in 2014, according to Irvine, Calif.-based CoreLogic.
Following an 11.1% jump in home prices in 2013, home prices last year only rose 7.4%.
"Nationally, home-price growth moderated and stabilized at 5% the last four months of the year," said Sam Khater, CoreLogic deputy chief economist (Housingwire.com Feb. 3). "The moderation can be clearly seen at the state level, with Colorado, Texas and New York at the high end of appreciation, ending the year with increases of about 8%."
This contrasts with previous appreciation rates in the double-digits, Khater added, as Nevada and California had posted increases in price growth of more than 20% earlier in the year.
In December, home prices including distressed sales climbed 5% annually, according to CoreLogic. On a month-over-month basis, home prices dropped by 0.1% from November's pace.
Excluding distressed sales, home prices climbed 4.9% annually and inched up by 0.1% from November.
"Home-price appreciation took a pause in November and December 2014 and we expect a slow start to 2015," said Anand Nallathambi, CoreLogic president/CEO (Housingwire.com). "As the year progresses, we expect upward pressure as low inventories and more first-time buyers drive up home prices."
CoreLogic said 27 states and Washington, D.C., remain at or within 10% of their peak appreciation rates, while three states--Maryland, Vermont and Connecticut--recorded annual price depreciation.
Moving into 2015, home prices are expected to climb 0.1% in January from December, and CoreLogic projects that over the course of 2015 home price-appreciation will climb 4.8%.