This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Home Price Climb Returning to Average

NEW YORK (TheStreet) -- Home prices rose faster in the third quarter than at any time since 2006, but are expected to slow considerably in 2014, according to data released Thursday by Corelogic.

Indeed, pending home sales data from the National Association of Realtors, also released Thursday, came in weaker than expected, showing a decline of 8.7% vs. the previous month. Consensus estimates were for just a 0.3% drop.

Corelogic expects the pace of home price increases to slow to 4.2% nationally through the third quarter of 2014, close to its long-term annual average of 4.5% recorded since 1975.

According to the Corelogic data, prices rose nearly 30% in Las Vegas and in several California cities, while Detroit also saw a near-20% jump. Gains in Northeastern cities such as Philadelphia and Hartford were around 3%.

"Investor demand and sales of foreclosed properties are dropping quickly," said CoreLogic Case-Shiller economist David Stiff. "This is especially true in states that were caught up early in the bubble and have non-judicial foreclosure proceedings, such as California and Arizona. In these states, inventories of bank-owned properties are close to being cleared. Non-investor demand, although increasing, will not replace demand from investors."

Home prices across the U.S. were 17% above the trough reached in the fourth quarter of 2011, but they are still 23% below the peak reached in the first quarter of 2006, Corelogic concluded.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs