Econintersect: CoreLogic’s Home Price Index (HPI) shows that home prices in the USA in August 2014 are up 6.4% year-over-year (reported up 0.3% month-over-month). The year-over-year growth rate was down from the 7.4% reported last month.
This is the 30th consecutive month of year-over-year increase. Mark Fleming, chief economist at CoreLogic stated:
The pace of year-over-year appreciation continues to slow down as real estate markets find more balance. Home price appreciation reached a peak of almost 12 percent year-over-year in October 2013 and has since subsided to the current pace of 6 percent. Continued moderation of home price appreciation is a welcomed sign of more balanced real estate markets and less pressure on affordability for potential home buyers in the near future.
Anand Nallathambi, president and CEO of CoreLogic stated:
Home prices continue to rise, albeit more slowly, across most of the U.S. Major metropolitan areas such as Riverside and Los Angeles, California, and Houston continue to lead the way with strong price gains buoyed by tight supplies and a gradual rebound in economic activity.
Comparison of Home Price Indices – Case-Shiller 3 Month Average (blue line, left axis), CoreLogic (green line, left axis) and National Association of Realtors (red line, right axis)
The way to understand the dynamics of home prices is to watch the direction of the rate of change – and not necessarily whether the prices are getting better or worse. Home prices are improving – but the rate growth of year-over-year price improvement is now declining.
Year-over-Year Price Change Home Price Indices – Case-Shiller 3 Month Average (blue bar), CoreLogic (yellow bar) and National Association of Realtors (red bar)