Home prices continue yearly climb
Posted on Tuesday, October 7, 2014 at 9:45:11 AM
Balanced home price growth is a good thing for the housing market, as it is a sign that a bubble may not be imminent and that buyers can use affordable residential financing to find great deals.
According to CoreLogic, home price growth is moving at a friendlier pace than in recent memory. On a yearly basis, prices increased by 6.4 percent in August, marking 30 months in a row with year-over-year gains. On a monthly basis, however, prices only ticked up 0.3 percent.
"The pace of year-over-year appreciation continues to slow down as real estate markets find more balance," explained Mark Fleming, chief economist at CoreLogic. "Home price appreciation reached a peak of almost 12 percent year-over-year in October 2013 and has since subsided to the current pace of 6 percent."
The most significant price growth in August belonged to Michigan, at 11.1 percent, and California, at 9.2 percent.
In addition to these gains, Redfin reported that supply for new homes is on the way down. Newly listed properties dropped 9.3 percent in August, at the same time that homebuyer demand increased. Even with the smaller inventory, Redfin chief economist Nela Richardson believes that prices will continue to decline over the next few months.