By Meghan de St. Aubin
U.S. home values rose at a slower price last year, a sign that the housing market is shifiting. Real estate data provider CoreLogic reported that home prices rose 5% in December compared to 12 months earlier. That's down from the 5.5% price gain recorded in November. It’s much lower than the double-digit gains that occurred last year.
The report marks 34 months of consecutive year-over-year increases in the CoreLogic Home Price Index (HPI), according to the data provider. Excluding distressed sales, home prices increased 0.1% to November and increased 4.9% year over year from December 2013.
In 2014, Colorado had the largest home price appreciation at 8.4%, closely followed by Texas (7.8%) and New York (7.6%). When comparing home price appreciation at the end of 2014 to the beginning of 2014, home prices nationwide were appreciating at 11% earlier in the year which decreased to 5% by December.
The year also began with Nevada having a 24% appreciation rate but ended with Colorado having the highest year-over-year appreciation at 8.4%. This shift is due to Colorado is experiencing a high demand for housing, according to CoreLogic
A slow start into 2015 is predicted by Anand Nallathambi, president and CEO of CoreLogic. Nallathambi reported that home prices are expected to be flat in January 2015 because home price appreciation took a pause in November and December of 2014.
However, as 2015 progresses Nallathambi predicted upward pressure as low inventories and more first-time home buyers to drive up home prices.