US house prices were pegged at a 6.3% year-on-year rise for the second month running in December, according to a new survey.
The month on month increase was 0.8% – up from 0.5% the month before.
But the first figures for the new year are expected to show a seasonal slowdown to a 0.2% increase for December and a 5.4% year-on-year rise, says property and real estate research firm CoreLogic.
The statistics reveal that the US has now recorded average house price rises for 46 months in a row, but prices still have a 7.6% gap to make up to reach their previous record levels recorded in April 2006.
Home values are not expected to breakthrough that threshold until May 2017, says the company.
Splintered market
CoreLogic’s chief economist Frank Northaft explained homeowners had a splintered market.
“Looking at the market nationally, many states have seen regular prices rises of 5% to 6%,” he said. “Putting local markets under the microscope shows a different picture.
“Some metropolitan areas have seen house prices increase by more than 10%, while others have had dramatic falling prices.”
The states with the largest year-on-year increases are:
- Colorado (10.4%)
- Washington (10.3%)
- Oregon (9.1%)
- Idaho (8.6%)
- Florida (8.0%)
Three states posted price drops:
- Louisiana (-2.9%)
- Mississippi (-2.8%)
- New Mexico (-0.1%)
The five states with house prices farthest from their 2006 peak are:
- Connecticut (23.1%)
- Arizona (25.1%)
- Rhode Island (25.7%)
- Florida (27.8%)
- Nevada (29.8%)
Highest gains
The CoreLogic index is running at a par with the Standard and Poor’s Case-Shiller Home Price Index, which also tracks average house prices across the US.
The S&P results showed an average 5.3% national increase in real estate values. For November 2015, up 0.2% from the previous month.
According to S&P, the highest gains were recorded in Portland (11.1%), San Francisco (11.0%) and Denver (10.9%).
Portland and Denver reported their highest ever house prices in the month.
“Home prices cemented their gains in the month due mainly to low mortgage rates, fewer homes on the market and better employment prospects,” said an S&P spokesman.
The S&P Index is almost 30% above the bottom hit in January 2012, but 5% below the peak of July 2006.
