Home prices climbing to old peaks
Posted on Tuesday, January 5, 2016 at 11:54:53 AM
Evidence that 2015 was a strong year for the housing market is bountiful, perhaps nowhere more so than in home price appreciation. For 42 months in a row, year-over-year home prices have grown, according to Black Knight Financial Services.
In October 2015, Black Knight's Home Price Index showed a 0.2 percent bump, bringing national home values to $254,000 - within 5.3 percent of their $268,000 June 2006 peak.
Home prices in markets like Austin, Dallas, Denver, Nashville and Portland, Oregon all once again hit new price records in October. But it was New York that, for the fourth consecutive month, led all states in price growth. With a 1.1 percent climb, the Empire State beat out both Utah and Nevada, both of which saw their homes appreciate by 0.8 percent.
CoreLogic, meanwhile, reported that home prices surged by 6.3 percent in November 2015. The research firm projected that they would increase by 5.4 percent on a year-over-year basis through November 2016, a forecast that will surely have homebuyers obtaining residential financing to complete their purchases.
"Heading into 2016, home price growth remains in its sweet spot as prices have increased between 5 and 6 percent on a year-over-year basis for 16 consecutive months," CoreLogic's chief economist Frank Nothaft concluded. "Regionally we are beginning to see fissures, with slowdowns in some Texas and California markets, but the northwest and southeast remain on solid footing."