This week Core Logic released its statistics on the Home Price Index through February 2015. It showed that nation-wide, home prices rose 5.6% from February 2014 to February 2015 and are expected to rise another 5% by February 2016.
Although 5% per year is the kind of appreciation we thought of as normal in prior years, this is the most dramatic year-over-year appreciation we’ve now seen in 9 years.
Not surprisingly, low end homes have led the way in appreciation, gaining 9.3% over the past year while high-end homes gained only 4.8%. There’s also some difference in appreciation rates between normal sales and short sales/foreclosures.
In spite of the increase, home prices nationwide are still 12.2% below the April 2006 peak. Across the U.S. thousands of homes are still underwater and thousands of homeowners are still being forced to either short sale or let their homes go into foreclosure. In five states – Nevada, Arizona, Rhode Island, Florida, and Connecticut – prices are still 24 -35% below their peaks.
Naturally, different regions in the country have been affected differently.
In fact, some states are doing quite well. The five states that registered the largest year over year price appreciation were Texas, Colorado, South Carolina, Michigan and Wyoming, with increases ranging upward from 8.4%.
Interestingly, when distressed sales were removed from the calculations, Florida joined the list, with price appreciation at 7.8%. (New York and Florida replaced Michigan and Wyoming in the top 5 when distressed sales were removed.)
So what about Texas?
Most other states show peak pricing at some time during 2005, 2006, or 2007. But Texas didn’t experience the wild swings in pricing that so many others areas did. Our prices didn’t escalate into the sky and they didn’t drop dramatically when the bubble burst.
Therefore, as of February 2015, our peak pricing was February 2015 – and we expect the increase to continue.
Core Logic also rated the top metropolitan areas in terms of price appreciation, and the Houston and Dallas areas came in at the top of the list, with 10.4% and 9.3% respectively. Next came the Los Angeles area at 7.9%. It’s no secret – people want to live in Texas!
Are you dreaming of purchasing a Texas home?
It might be a good idea to act now – while interest rates are still at rock bottom and before prices creep higher.
The first step is pre-approval for your home mortgage loan, so call the Mike Clover Group today at 1-800-2232-7409 or apply on line at http://www.mikeclover.com. We’ll be happy to get you pre-approved and ready to find your new home.
18170 Dallas Parkway
Dallas, TX 75287
Apply at: www.mikeclover.com