Housing market sees price gains, though growth expected to moderate
Posted on Wednesday, January 8, 2014 at 9:40:43 AM
Rising home prices are often connected to a quality housing market, and recent gains may come as positive news for homeowners and those interested in residential financing.
CoreLogic's recent Home Price Index indicated that prices have been on the rise across the U.S. However, gains were mostly felt when compared to last year. In November, home prices rose 11.8 percent year-over-year, while the shift from October to November was only 0.1 percent.
"The housing market paused as expected in November for the holiday season with very low month-over-month appreciation," said Mark Fleming, chief economist for CoreLogic. "Year-over-year home prices are up an impressive 11.8 percent. Our pending HPI projects that home prices will grow by 11.5 percent for the full year 2013. That will make 2013 the best year for home-price appreciation since 2005."
David Myers, in a column for Louisiana-based newspaper The Times-Picayune, wrote that 2014 should be another great year for the housing market. Even so, he predicted that price gains will slow eventually, although still remain positive.
The most likely reason why has to do with the number of buyers. There are expected to be fewer this year than last, which can lead to slower price growth and more moderate conditions.