The home real estate market is slipping into a winter lull that will cool rising home prices, a real estate research firm says.
Home prices rose by only 0.2% in October from September and virtually no growth is expected in November, market researcher CoreLogic says.
Still, prices were up 12.5% in October vs. a year ago, marking the 20th consecutive monthly year-over-year increase nationally.
"House price appreciation has slowed as expected for the winter," says Mark Fleming, CoreLogic chief economist.
Normal seasonal patterns and higher mortgage rates since spring explain why prices are no longer rising as rapidly as they did in the spring and summer, CoreLogic says.
The slowing pace also reflects a market showing "some level of normality," Fleming says, as investors, who have been buying up distressed homes for months, make up less of the overall activity.
Year over year, the five states with the highest home price appreciation were: Nevada, up 25.9%; California, up 22.4%; Georgia, 14.2%; Michigan, up 14.1%; and Arizona, up 14%.
The CoreLogic report follows last week's release of the Standard & Poor's Case-Shiller 20-city index for September. It showed prices up 0.7% in September from August and 13.3% ahead of a year ago.
While 13 of 20 cities showed higher year-over-year growth rates than in August, 19 cities had lower monthly increases in September than August, Case-Shiller said.
Many economists expect home price appreciation to slow next year. CoreLogic expects 2014 prices to rise 6% to 8% next year vs. a 10% to 12% rise this year.
Still, prices were up 12.5% in October vs. a year ago, marking the 20th consecutive monthly year-over-year increase nationally.
"House price appreciation has slowed as expected for the winter," says Mark Fleming, CoreLogic chief economist.
Normal seasonal patterns and higher mortgage rates since spring explain why prices are no longer rising as rapidly as they did in the spring and summer, CoreLogic says.
The slowing pace also reflects a market showing "some level of normality," Fleming says, as investors, who have been buying up distressed homes for months, make up less of the overall activity.
Year over year, the five states with the highest home price appreciation were: Nevada, up 25.9%; California, up 22.4%; Georgia, 14.2%; Michigan, up 14.1%; and Arizona, up 14%.
The CoreLogic report follows last week's release of the Standard & Poor's Case-Shiller 20-city index for September. It showed prices up 0.7% in September from August and 13.3% ahead of a year ago.
While 13 of 20 cities showed higher year-over-year growth rates than in August, 19 cities had lower monthly increases in September than August, Case-Shiller said.
Many economists expect home price appreciation to slow next year. CoreLogic expects 2014 prices to rise 6% to 8% next year vs. a 10% to 12% rise this year.
Article curated from USA Today
External Wall Insulation is the most effective means of thermally insulating solid wall homesThis is a protective and decorative coating to the forehead.It’s adding a decorative weather-Proof insulating treatment to the outside of your wall.External Insulation is more expensive solution, but additional problems suffered by some homes, such as rain penetration, poor airtightness or frost damage can be solved on an External-wall-insulation.ie system.
ReplyDelete