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The MReport Webcast: Wednesday 12/3/2014

Home price growth picked up the pace in October, pushing a growing number of states to new peaks, according to report released Tuesday. Real estate information firm CoreLogic reported a 6.1 percent annual gain in its October Home Price Index. The report, which includes distressed sales data, marks the 32nd straight month for year-over-year price growth, though increases have slowed down by nearly half compared to a year ago. Looking ahead, the company expects prices will continue to slow, forecasting a 5.1 percent improvement this time next year.

As of October, 27 states and the District of Columbia were at or within 10 percent of their home price peaks, and nine had achieved new record highs. That group includes Colorado, Nebraska, the Dakotas, and Texas, as well as newcomers Louisiana, New York, Tennessee, and Wyoming. By mid-2015, CoreLogic expects home prices in more than half the country will have reached or surpassed levels last seen during the housing bubble.                                                   

Construction spending saw a substantial increase in October, advancing on solid gains in homebuilding outlays. In a report on Tuesday, the Commerce Department estimated construction spending throughout the month at a seasonally adjusted annual rate of $971 billion, an increase of 1.1 percent over September's revised estimate. A large share of October's increase came in spending on residential projects, which was up 1.3 percent from September. Despite the promising gain, economists Patrick Newport and Stephanie Karol at IHS Global Insight called October's residential construction numbers quote--deceptively strong, saying they were boosted artificially by a major jump in the average home price.

 

About Author: Jordan Funderburk

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