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Home-Price Appreciation on the Rise

CoreLogic’s October Home Price Index (HPI) says home prices rose 3.5% and are projected to increase by 5.4% over the next year. The increase in the October 2019 HPI gain, however, was down from October 2018’s rise of 5.2%. 

October 2019’s increase in the HPI was higher than September’s 3.3%. CoreLogic states home prices have been gradually rising year-over-year between 3.2% and 3.5% over the past six months. 

Home prices have increased annually on a monthly basis for more than seven years since 2012 and have gained 62.5% since bottoming out in March 2011. The overall HPI in October 2019 was 9.4% than its pre-crisis peak in April 2006.

The lowest-priced tier increased 5.5% year-over-year in October 2019, compared to 4.7% for the low-to middle-price tier, 4% for the middle-to moderate-price tier, and 3.1% for the high-price tier. 

Since 2011, price gains were strongest for lower-priced homes, with that tier seeing prices increase by 96.1%. 

Idaho once again led the nation in appreciation, which is had done for more than a year, with an annual appreciation of 10.9% this October. The next closest state was Maine with an appreciation rate of 8%. Connecticut's home prices were unchanged from October 2018. 

CoreLogic said prices in 41 states, including the District of Columbia, are higher than their nominal pre-crisis peaks. Connecticut home prices in October 2019 were the farthest below their all-time HPI high and are 16.5% below the July 2006 peak. 

New York, Illinois, the District of Columbia, and New Jersey all had annual price gains of less than 2%. 

Home-price growth slowed in 38 states compared to a year earlier and was most pronounced in Nevada, with prices increasing just 3.2% year-over-year—an 8.7% decline from the 11.9% annual increase in October 2018.

Last month, the Federal Housing Finance Agency House Price Index reported home prices rose Q3 2019 were up 1.1%.

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.

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