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Home Prices in 6 U.S. States Just Broke Their 2006 Records

Home Prices in 6 U.S. States Just Broke Their 2006 Records



Across America, the housing market has recovered since the crash of 2009. However, in six states, according to CoreLogic, the market isn’t just healthy—it’s also setting new price records, even surpassing the peak set in 2006.

According to the February CoreLogic Home Price Index, which tracks the resale activity of thousands of homes across the country, the following six states created new index highs.

HPI increase

Most of those states have benefited from the domestic energy boom, while New York has been lifted by the growing economy in general.

“This price appreciation has real fundamentals behind it,” said Jonathan Smoke, chief economist for realtor.com®. “This isn’t speculation driven by loose credit. It’s people with rising incomes driving it. This is the good kind of price appreciation.”

Across the country, home prices rose 5.6% from February 2014 to February 2015, representing three years of consecutive year-over-year national home price growth, according to CoreLogic.

Appreciation may be great for sellers, but not necessarily for buyers. With prices increasing but inventory tight, affordability is a major hurdle. With CoreLogic’s February numbers indicating strong sales in off-peak months, the spring market is poised for success.

“This is the hottest home price appreciation prior to the spring selling season in nine years,” said Anand Nallathambi, CoreLogic’s president and CEO.

In 26 states, home prices still provide a 10% discount from their 2006 peaks, giving buyers added incentive to join the spring market buying season. But prices are rising across the board and are expected to rise every month this year, according to CoreLogic.

The CoreLogic HPI measures existing-home sales with and without foreclosure and short sales included. While foreclosures once dragged down the value of market-rate homes, CoreLogic is showing that these distressed sales may factor in slight discounts, but they are not stripping homes of their value as they once did.

While buyers were competing for every desirable house that hits the market, CoreLogic is showing that low-end home prices increased 9.3% year over year, while high-end home prices rose only 4.8% for the same period—”a gap that is three times the average historical difference,” CoreLogic chief economist Frank Nothaft wrote in a statement.

Only Connecticut experienced a statewide decline of just under 1% in home prices in February, according to the report, along with eight metro areas: Baltimore; Philadelphia; Hartford, CT; New Orleans; Rochester, NY; Worcester, MA; Albany, NY; and New Haven, CT.

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