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Home prices tick up on year-over-year basis

Posted on Friday, February 7, 2014 at 10:22:43 AM

Over the past few years, home prices had taken a hit thanks to tougher economic times and waning buyer demand. That meant that some homeowners found themselves underwater on their residential financing, owing more on their mortgages than the homes were worth.

However, that trend has been reversed. According to CoreLogic's Home Price Index report, home prices across the country increased 11 percent from December 2012 to December 2013. This also represents nearly two full years of consecutive year-over-year growth. On a monthly basis, however, prices slipped in the other direction - down 0.1 percent.

"Last year, home prices rose 11 percent, the highest rate of annual increase since 2005, and 10 states and the District of Columbia reached new all-time price peaks," said Mark Fleming, chief economist for CoreLogic. "We expect the rising prices to attract more sellers, unlocking this pent-up supply, which will have a moderating effect on prices in 2014."

These trends are expected to continue, according to The Associated Press. Some economists predicted that sales and prices will rise throughout 2014, but at a slower pace. This may be attributed to job gains, and higher prices will also encourage owners to sell their current properties.