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Home prices see significant year-over-year increase

Posted on Tuesday, March 4, 2014 at 9:56:36 AM

Buyers interested in affordable residential financing often keep a close eye on several housing market conditions, including home prices. And, numbers have been on the way up as of late, thanks in part to several factors.

According to CoreLogic, home prices increased 12 percent year-over-year in January across the country, including distressed sales. That continues the trend of 23 consecutive months of growth on a yearly basis. Compared to December, however, prices only ticked up 0.9 percent. 

"Polar vortices and a string of snow storms did not manage to weaken house price appreciation in January," said Dr. Mark Fleming, chief economist at CoreLogic. "The last time January month-over-month and year-over-year price appreciation was this strong was at the height of the housing bubble in 2006."

The states with the strongest increases in home prices were Nevada, at 22.2 percent, and California, at 20.3 percent, CoreLogic reported. 

In addition, the National Association of Home Builders noted that buyer preferences may be shifting across the country, which has led to bigger and more expensive homes getting made. Overall, the average home size has risen over the last few years, and more homes now have at least four bedrooms. In direct relation has been the increase in average sales price, with more buyers needing a strong credit score to acquire residential financing.