Miami leads rising us house prices

Photo: Joisey Showaa

America's property market has experienced a marked moderation in 2014, following months of robusy growth. According to Zillow's latest index, US home values rose 6 per cent year-over-year in November, the smallest annual gain since June 2013.

Nonetheless, US house values have risen year-on-year for 28 months in a row, taking the aggregate value of all US homes to an antipicated $27.5 trillion, $1.7 trillion higher than the previous year.

The October S&P/Case-Shiller (SPCS) data also shows more slowing in the housing market, with annual growth in national home prices falling to 4.6 per cent. Annual appreciation in home values has been below 5 percent for the past two months, says S&P/Case-Shiller, "and we anticipate this trend to continue into the future".

The 10- and 20-City Indices also saw annual growth rates decline in October; the 10-City index rose 4.4 percent, while the 20-City Index rose 4.5 percent – down from rates of 4.5 percent and 4.7 percent, respectively, in September.

The National Association of Realtors also confirms the trend with its latest report: the median existing-home price for all housing types in November was $205,300, according to the NAR, 5 per cent above November 2013. This marks the 33rd consecutive month of year-over-year price gains.

Moderation has been partly fuelled by declining demand from buyers.

Lawrence Yun, NAR chief economist, says sales activity was choppy throughout the country in November and housing inventory began its seasonal decline: "Fewer people bought homes last month despite interest rates being at their lowest levels of the year.

"The stock market swings in October may have impacted some consumers’ psyches and therefore led to fewer November closings. Furthermore, rising home values are causing more investors to retreat from the market."

Florida, though, remains a bright spot, with Zillow highlighting Miami as boasting the largest annual gains in November, with property prices up 13.6 per cent. Atlanta (12.8 per cent) and Houston (11.9 per cent) followed, but the top four was completed by Orlando (11.9 per cent).

The recovery has some way still to go, though, notes Zillow, with the aggregate value of all homes still 6.1 per cent below the Q3 2006 peak of almost $29.3 trillion.

"This makes sense, as the median home value nationwide is still down almost 10 percent from its pre-recession high," comments the report.