House prices in the United States are continuing to rise – but some states are still far behind peak prices seen before the credit crisis.
On average, prices across the US rose by 7.4% in the year to July 2014, according to the latest figures from home value monitor CoreLogic.
The increase includes distressed home sales as banks continue to clear their books of foreclosed homes which have blighted the market for the past five years.
However, house prices have now gone up for 29 months in a row.
Stripping out distressed sales from the figures, home prices increased by 6.8% year-on-year to July. The monthly rise was 1.2%.
Price rises slowing
Despite the gains seen in July, CoreLogic says average prices across the US are still 11.9% below the peak set in April 2006.
Excluding distressed sales, which are homes in negative equity or foreclosed by banks, average prices lie at 8.3% below the peak.
Without distressed sales, every US state and the District of Columbia reported increasing home prices.
The rate of increase in home values is expected to slow in the coming year – with CoreLogic predicting a 5.7% increase to July 2015.
Sam Khater, an economist for CoreLogic, said: “The market has clearly seen the rate of increase slow down since the spring. We are also seeing a shift in locations for the highest prices.
“Earlier in the year, western and southern states were performing best, but now it’s the north east and mid-west.”
Winners and losers
According to the CoreLogic data, states with the largest year-on-year price rises in July (excluding distressed sales) were:
- Massachusetts 11.2%
- New York 9.7%
- Maine 9.5%
- Hawaii 9.2%
- Florida 8.8%
States with the largest year-on-year price rises in July (including distressed sales) were:
- Michigan 11.4%
- Maine and Nevada 10.6%
- California and Hawaii 10.5%
States with home prices furthest below peak values in May were:
- Nevada -36.4%
- Florida -33%
- Arizona -28.9%
- Rhode Island -26.9%
- New Jersey -20.6%
“This is a comeback from house prices as most of the country is seeing home values reach a level that has not been surpassed since the boom years before the downturn,” said Anand Nallathambi, president and CEO of CoreLogic.
“Our data shows this will continue with many more states attaining new record house price levels this year and continuing into next year.
“We have no doubt the recovery is marching on.”
