The end of June came with disappointing reports for those planning to buy anytime soon, because it marked the 40th month of home price gains all over the United States. Slowly but surely, the added houses might become as expensive as they used to be in 2006.
A report issued by national real estate data provider CoreLogic shows that the numbers are only 7 percent lower than the ones recorded in the nation’s 2006 peak.
It was also shown that homes are, on average, 1.7 percent more expensive in June, compared to last month. This means the annual spike in prices is 6.5 percent higher than last year.
Moreover, the California- based research company does not expect the prices to go down anytime soon. According to their predictions, at least a 0.6 percent increase is expected in July, adding to a 4.5 percent spike by the same month in 2016.
“The current cycle of home price appreciation is closing in on its fourth year with no apparent end in sight. Pent-up buying demand and affordability, together with higher consumer confidence buoyed by a more robust labor market, are a potent mix fueling a 6.5 percent jump in home prices through June with more increases likely to come,” said president of CoreLogic, Anand Nallathambi.
About 35 states were at their peak prices or 10 percent within them last month. However, fifteen states (Alaska, Colorado, Arkansas, Hawaii, Kentucky, Iowa, Nebraska, North Carolina, North Dakota, , New York, Oklahoma, Tennessee, Texas, South Dakota and Wyoming) have recorded new peaks. These include distressed sales.
The states that recorded the highest price escalation, including distressed sales, were Colorado – 9.8 percent increase, Washington – 8.9 percent, New York – 8.3 percent, South Carolina and Nevada – 8 percent.
Home price depreciation was only reported for four states: Massachusetts, Connecticut, Louisiana and Mississippi, where the prices went down by 5 percent, 0.6 percent, 0.4 percent and 0.3 percent, respectively.
The cause for such numbers is linked to the high demand, which is in turn prompted by a more stable economy.
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