House prices in the US increased by 6.3% year-on-year until the end of November, according to a new survey.
The figures are for single family homes, including distressed sales.
The month on month increase was 0.5%, reports property and real estate research firm CoreLogic.
The company expects a flat December, with no rise or fall in prices.
The forecast for the year to November 2016 is for house prices to cool, but still rise by 5.4%.
The results show the US has seen 45 months in a row of property price rises, but home values are still an average 7.3% below their peak in April 2006.
Property in a sweet spot
The firm expects house prices to climb back to the peak price in May 2017.
“The start of 2016 sees US house prices in a sweet spot,” said CoreLogic’s chief economist Frank Northaft.
“Annual figures have stuck at rising between 5% and 6% for 16 months in a row now, but the market is starting to splinter with climbing values in some states and a slowdown in Texas and California.”
The five states with the largest year-on-year increases are:
- Colorado (10.4%)
- Washington (10.2%)
- Oregon (9.0%)
- Idaho (8.5%)
- Florida (7.9%)
Three states posted price drops:
- Louisiana (-1.6%)
- Mississippi (-3.0%)
- New Mexico (-0.7%)
The five states with house prices farthest from their 2006 peak are:
- Maryland (21.7%)
- Rhode Island (24.6%)
- Arizona (24.7%)
- Florida (28.0%)
- Nevada (30.1%)
Cheaper homes driving market
More detailed analysis of the house price data reveals that cheaper homes are driving the market and reporting the largest increase in value.
Lowest price homes increased in value by 8.2% in the year to the end of November 2015 and by 48.8% from the lowest value recorded in March 2009.
“These homes are the only one out of our four price tiers that have passed their pre-downturn peak values,” said a spokesman for the firm. “The value of these homes is now at the highest ever and 2.3% above the previous peak in April 2006.”
The firm’s figures echo the Standard & Poor’s/Case-Shiller Index for 20 major cities, which returned a 5.5% increase in values for the year to October 2015. San Francisco, Denver, and Portland all showed 10.9% increases.
