Home Prices Rise 11.8% Year-Over-Year in November
NEW YORK (TheStreet) -- U.S. home prices paused in the holiday season, ticking up by 0.1% in the month of November, according to the latest report from Core Logic.
Year-over-year, prices were up 11.8%. Excluding distressed property sales, which sell at a steep discount, prices were up 0.3% month-over-month and 10.4% year-over-year.
The CoreLogic Pending Home Price Index predicts that prices will dip in December by 0.1%, to finish the year up 11.5%. That would mark the best annual gains since 2005.
"On a year-over-year basis, home prices have appreciated every month in 2013. Twenty-one states and the District of Columbia are now or within 10% of their peaks," said Anand Nallathambi, president and CEO of CoreLogic. "The outlook for 2014 looks a bit less robust as regulatory complexities and tight credit can be expected to cool the housing market."
Nevada and California led the gains among states, with home prices rising 25% and 21% respectively year-over-year in November.
Home prices more recently have shown signs of cooling down, particularly in the hottest markets. Many see the slowdown as a healthy sign for the housing recovery as the rapid appreciation had raised concerns of a bubble in some areas.
Prices are forecast to rise by about 5% on average in 2014.
-- Written by Shanthi Bharatwaj in New York.