U.S. Home Prices Approach Pre-Crisis Levels

Even if you include distressed sales, 27 states and the District of Columbia recorded average home prices that were within 10 percent of their pre-2008 highs, CoreLogic reports.

And the company believes that prices will hit or pass the previous peak by mid-2015. 

“The gradual recovery of the housing market continues to be propelled by improving employment, more buyer and seller confidence, continued low rates and, in certain parts of the country, investor demand,” said Anand Nallathambi, president and CEO of CoreLogic. “The continued actual and projected rise in home prices confirms that fact.”

In October, home prices were up 6.1 percent compared to October 2013, and up 0.5 percent compared to September of this year. Michigan (10.5 percent), South Dakota (10.4 percent), Montana (9.1 percent), Texas (8.7 percent) and Colorado (8.6 percent) had the biggest gains in home prices in October.

Of special interest to investors, distressed sales should increase by 4.7 percent over the next year, CoreLogic predicted.

“Home price growth is moderating as we head into the late fall and is currently running at half the pace it was in the spring of 2014,” said Sam Khater, deputy chief economist at CoreLogic. “However, there are still pockets of strength, especially in several Texas markets, as well as Seattle, Denver and other markets with strong economic fundamentals.”

Article Compliments of Community Investor Magazine