2013 home price growth strongest in eight years

by MPA05 Feb 2014
Annual home price growth was the strongest last year since 2005, according to data released Tuesday.

Home prices nationwide, including distressed sales, were up 11% year over year in December, according to CoreLogic’s Home Price Index. December was the 22nd consecutive month of year-over-year price growth nationally. Home prices including distressed sales saw a slight month-over-month decrease, falling 0.1% from November.

Excluding distressed sales, home prices were up 9.9% in December from the year before and 0.2% from November.

“Last year, home prices rose 11 percent, the highest rate of annual increase since 2005, and ten states and the District of Columbia reached new all-time price peaks,” said Dr. 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.”

“The healthy and broad-based gains in home prices in 2013 help set the stage for the continued recovery in the housing sector in 2014,” said Anand Nallathambi, president and CEO of CoreLogic. “After six years of fits and starts, we can now see a clearer path to a durable recovery in single-family residential housing across most of the United States.”

Home prices are expected to continue their year-over-year climb in January, with a projected 10.2% increase from January 2013. Prices are expected to fall slightly on a month-over-month basis, with a projected 0.8% drop from December.

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