US house prices are on track to shatter the pre-credit crunch glass ceiling over the coming months, according to a new survey.
Most states have seen a house price boom, with 42 months in a row of rising prices, says real estate analyst CoreLogic.
Although the surge in prices has slowed from double digits, the firm is predicting real estate values will hit a new peak by April 2017.
In August, the research found house prices bumped up by 1.2% on July.
The year-on-year increase was 6.9%.
However, prices are expected to remain static for September and the year-on-year rise is expected to drop to 4.3%.
One state in the red
Property values are currently 6.3% below their peak, which was reached in April 2006.
“The market is moving,” said a CoreLogic spokesman. “Mortgage rates are expected to rise and more home starts are predicted.
“Together these should increase supply and take up the slack in demand which will put a brake on prices.
“But although prices are slowing, we still expect to see them beat the previous high in April 2017.”
The survey found Mississippi was the only state in the red over the year with a -0.88% price drop, while12 states reached new property highs.
Colorado led the way of the five states with the largest year-on-year price increases including distressed sales with a 10.4% rise, followed by Washington (10.3%); Nevada (9.3%); Oregon (9.1%) and New York (8.6%).
Overpriced cities
The five states with the largest annual price rises excluding distressed sales were the same states, but in a different order – Colorado (10.1%); Washington (9.9%); New York (9.2%); Oregon (9.1%) and Nevada (8.5%).
Despite rising prices across the nation, bargains are still available.
The five states farthest away from peak prices are: Nevada (29.9%); Florida (28.1%); Arizona (25.3%); Rhode Island (24.1%) and Maryland (19.4%).
According to the statistics, some metropolitan areas are overvalued.
Dallas, Texas, has seen an 8.9% annual price increase; Houston, Texas, is up 7.2% and Washington DC went up 2.1%.
“Our prediction is prices will slowly start to fall in these metropolitan areas over the next few months, “said the spokesman.
