Tuesday
September 27, 2016

10 States Zoom to New Price Highs

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10 States Zoom to New Price Highs

Home prices are being buoyed by a lack of inventory in many markets. That’s what prompted prices to reach new highs in 10 states in October, according to CoreLogic.

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“Many markets have experienced a low inventory of homes for sale along with strong buyer demand, which is sustaining upward pressure on home prices. These conditions are likely to persist as we enter 2016,” says Frank Nothaft, chief economist for CoreLogic.

CoreLogic’s latest Home Price Index Forecast showed that home prices in October, including distressed sales, rose by 6.8 percent year over year nationwide. Next year, prices are expected to slow to a 5.2 percent gain. 

Nevertheless, the rise in home prices over the past few years has largely been a healthy trend, says Anand Nallathambi, president and CEO of CoreLogic. “The shadow inventory has been reduced significantly and home equity levels are now approaching pre-recession levels,” says Nallathambi. “As we move forward, the rise in home prices will need to be better correlated to family income trends over time to avoid homes becoming unaffordable for many. This is especially true in several metropolitan areas where home prices have grown rapidly.”

The states that reached new highs with home prices in October, according to CoreLogic, are:

  1. Colorado
  2. District of Columbia
  3. Hawaii
  4. Maine
  5. Nebraska
  6. New York
  7. Oklahoma
  8. Tennessee
  9. Texas
  10. Wyoming

When factoring in distressed sales, the following five states registered the largest year-over-year home price appreciation in October:

  • Colorado: 10.5%
  • Washington: 9.6%
  • Oregon: 9.4%
  • South Carolina: 9%
  • New York: 8.6%

When excluding distressed sales, these five states registered the largest year-over-year home price appreciation in October:

  • Colorado: 10.1%
  • Oregon: 9.5%
  • New York: 9.3%
  • South Carolina: 9.3%
  • Washington: 8.9%

Meanwhile, the following five states remain furthest from peak values in October:

  • Nevada: -30.4%
  • Florida: -28%
  • Arizona: -24.7%
  • Rhode Island: -24.1%
  • Connecticut: -20.7%

Source: CoreLogic