Home Prices Rise Slight in Sept., But Remain Below Peak Levels

Home Prices Rise Slight in Sept., But Remain Below Peak Levels
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    Home prices continue to rise, climbing by 0.2 percent in Sept. according to CoreLogic, a data gathering firm.

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That marks the 19th consecutive month of year-over-year price gains with home prices up by 12 percent over Sept. 2012. October should keep that trend moving in the same direction with sales expected to have increased by 12.5 percent over a year earlier.

April 2006 Peak Levels

Current home prices are still 17.4 percent below the peak reached in April 2006. Home values in Nevada remain 41.4 percent below the peak level followed by Florida down by 37.7 percent, Arizona off by 32.1 percent, Rhode Island down by 28.3 percent and West Virginia off by 26.5 percent.

Nevada has also been experiencing the strongest rebound with home prices up by 25.3 percent over a year earlier. California home prices are up 22.5 percent over Sept. 2012, followed by Arizona up 14.6 percent, Georgia up by 14.4 percent and Michigan up by 13.9 percent. Several states, however, are seeing only slight gains including West Virginia up by 0.9 percent year-over-year and Arkansas up by 1.3 percent reports CoreLogic.

Strongest Metro Areas

Among metropolitan areas, the Riverside-San Bernandino-Ontario sections of California have seen home prices rise by 23.93 year-over-year. That increase includes distressed homes. The Los Angeles area is up by 21.5 percent over the past year followed by Atlanta up by 16.7 percent and Phoenix up by 16.41 percent. Notably, the nation’s largest metropolitan area, New York, has seen home prices increase by 9.31 percent for the 12-month period ending in Sept. 2013.

For some states, the recovery has been particularly strong with these states achieving new peak levels this year. Alaska, Colorado and Iowa each reached new peak home prices in August, before falling slightly in Sept. Vermont, North Dakota, South Dakota and Nebraska each set record average home price levels in Sept. according to CoreLogic.

Some states may take many years to reach previous peak levels. For instance, home values in Nevada, Florida and Arizona, were highly overinflated before collapsing, prices that were driven up by speculation and other factors during the 2000s.

Home Renovation Considerations

How will the current trend in home prices affect your home improvement project? It may spell the difference between making small repairs or undertaking a huge renovation. If your home value is still suppressed, then waiting it out may be your best recourse. Then again, if you are simply trying to make your home more livable, then any renovation should be considered with home prices not a big factor for people that plan to stay put.

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Categories: Home Values

About Author

Matthew C. Keegan

Matt Keegan is a freelance writer and editor as well as publisher of "Auto Trends Magazine", an online publication. Matt covers campus, consumer, business and financial topics on various websites and weblogs, and has been published in the "Houston Chronicle", "Sam's Club Magazine" and "Wisconsin Golfer".