CoreLogic has released an analysis of home price trends during the fourth quarter of 2013 in more than 380 U.S. markets based on the CoreLogic Case-Shiller Indexes™.
The report notes that in the fourth quarter of 2013, home prices rose from Q4 2012, noting that home prices nationwide were 20 percent above the trough reached in the fourth quarter of 2011, but remained 21 percent below the peak reached in the first quarter of 2006.
In line with recent analysis from the National Association of Realtors, the Indexes project that price appreciation will slow in all markets to 5.3 percent nationally through the end of 2014, just above its long-term average of 4.5 percent annually.
“Limited construction of new homes and low inventories of existing homes for sale contributed to the jump in prices,” said Dr. David Stiff, principal economist for CoreLogic Case-Shiller™. “Developers remain cautious about building too many new houses until they see stronger demand in their markets.”
OKC saw no change, while Vegas improved 26 percent
The largest metropolitan areas that experienced the most rapid appreciation rates on a year-over-year basis compared to fourth quarter 2012 were Las Vegas (+26 percent), Riverside, Calif. (+24 percent) and Oakland, Calif. (+23 percent).
The three largest metropolitan areas that experienced no change were Oklahoma City, and Tulsa, Okla. and Virginia Beach, Va.
“There are a number of metropolitan areas that have reached new price peaks, including Houston, Dallas, Denver, Honolulu and Pittsburgh,” Dr. Stiff added. “These cities have never achieved price levels quite this high, not even in the record year of 2006.”
A glimpse into the future
Of the largest metropolitan areas, those with the greatest projected year-over-year gains through the end of 2014 are Tucson, Ariz. (+11 percent), Rochester, N.Y. (+9 percent) and Hartford, Conn. (+9 percent). The largest metropolitan areas with the smallest projected gains are Nashville, Tenn. (+2 percent), Sacramento, Calif. (+2 percent) and Warren, Mich. (+2 percent).
“For the remainder of 2014, investor demand and sales of foreclosed properties should drop off quickly. Traditional buyers are returning slowly to the market, but cannot replace demand from investors who led the market in recent years,” Dr. Stiff noted.