Us house prices up more than 12pc

Photo credit: Michael Patrick

The average property value in America climbed 12.2 per cent in February 2014 year-on-year, according to the latest CoreLogic Home Price Index, the 24th month in a row of annual increased in house prices.

14 states showed double-digit year-over-year growth in February, with Colorado, Nebraska, North Dakota, Texas and the District of Columbia all reaching record highs. 22 other states were at or within 10 percent of previous peaks.

Excluding distressed sales, home prices nationally increased 10.7 percent in February 2014 compared to February 2013 and 0.9 percent month over month compared to January 2014. Also, all 50 states and the District of Columbia showed year-over-year home price appreciation when distressed sales were excluded. Distressed sales include short sales and real estate owned (REO) transactions.

Beginning with the February 2014 HPI report, CoreLogic is introducing a new forecast metric that provides an advanced indication of trends in home prices.  Individual forecasts, making up the CoreLogic HPI Forecasts, provide forward-looking insight among the various categories of the CoreLogic HPI.

Including distressed sales, the forecast indicates that home prices are projected to increase 0.5 percent month over month from February 2014 to March 2014. Furthermore, the forecast indicates that home prices, including distressed sales, are expected to increase 10.5 percent year over year from March 2013 to March 2014.

“As the spring home-buying season kicks off, house price appreciation continues to be strong,” said Dr. Mark Fleming, chief economist for CoreLogic. “Although prices should remain strong in the near term due to a short supply of homes on the market, price increases should moderate over the next year as home equity releases pent-up supply.”

“February marks two straight years of year-over-year gains in national prices across the United States,” said Anand Nallathambi, president and CEO of CoreLogic. “The consistent upward movement in home prices should ultimately prove to be an important stimulant for higher levels of sustained market activity and growth in the housing economy.”