Home prices in the United States rose for the 42nd consecutive month in August. Compared with August of 2014, home prices rose 6.9%, including the sales of distressed properties. The year-over-year July increase was also 6.9%. Month over month, August home prices rose by 1.2% from July prices, which had risen 1.7% over May prices.
Only Mississippi posted negative home price appreciation in August. Including sales of distressed properties, sales prices in Mississippi are down 0.88%.
The data were released Tuesday by CoreLogic in its Home Price Index report for August.
Including sales of distressed properties, the five states posting the largest year-over-year price increases in August were Colorado (up 10.4%), Washington (up 10.3%), Nevada (up 9.3%), Oregon (up 9.1%) and New York (up 8.6%).
Excluding sales of distressed properties, the five states posting the biggest price increases over the past 12 months were Colorado (up 10.1%), Washington (up 9.9%), New York (up 9.2%), Oregon (up 9.1%) and Nevada (up 8.5%).
The five states with the largest remaining peak-to-current declines, including distressed transactions, were Nevada (down 29.9%), Florida (down 28.1%), Arizona (down 25.3%), Rhode Island (down 24.1%) and Maryland (down 19.4%).
Peak home prices occurred in April 2006 and current prices remain 6.3% below that peak. Including distressed sales, CoreLogic forecasts national single-family home prices to reach a new peak in April 2017.
CoreLogic’s chief economist said:
Economic forecasts generally project higher mortgage rates and more single-family housing starts for 2016. These forces should dampen demand and augment supply, leading to a moderation in home price growth. Over the next 12 months, CoreLogic projects its national [home price index] HPI to rise 4.3 percent. This is less than the 5.3 percent gain over the 12 months through June 2015 … and less than the 4.5 percent growth through June in the national CoreLogic Case-Shiller Index.
CoreLogic has forecast that home prices will remain flat month-over-month in September and rise by 4.3% between August 2015 and August 2016. Both projections include distressed sales.