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Home, asking prices rise on a yearly basis

Posted on Tuesday, November 5, 2013 at 10:50:56 AM

Those looking into residential financing may be faced with a higher sticker price on their dream home. While this may sound like bad news, it is in fact representative of a positive trend for the housing market, with conditions headed back toward before the bubble started to form.

According to the CoreLogic Home Price Index, home prices ticked up 12 percent year-over-year for September. When compared to August, however, the gains are smaller - only 0.2 percent. 

"September marked the unofficial five-year anniversary of the start of the housing crisis," said Dr. Mark Fleming, chief economist for CoreLogic. "The five-year home price appreciation for all homes in the nation was 3.4 percent. While there is still room for improvement, the CoreLogic HPI is at the highest level since May 2008."

When accounting for distressed sales, Nevada led the way with the greatest home price increase at 25.3 percent, closely followed by California at 22.5 percent. No state saw a decrease in this statistic for September.

Asking prices are also on the rise year-over-year, according to recent data from Trulia. Up 11.7 percent for October, the monthly gain was only 0.6 percent. Several factors may have come into play, such as rising residential financing rates, larger inventory and fewer investors in the segment.