Home prices rise across U.S. in July

Home prices across the U.S. were up by 6.9% in July, according to new data.

Home prices nationwide, including distressed sales, rose 6.9% from July of 2014, according to analytics firm CoreLogic. On a month-over-month basis, home prices were up 1.7% from June.

“Home sales continued their brisk rebound in July and home prices reflected that, up 6.9% from a year ago,” said CoreLogic’s chief economist, Frank Nothaft. “Over the same period, the National Association of Realtors reported existing sales up 10%, and the Census Bureau reported new home sales up 26% in July.”

When distressed sales were taken into account, one state – Colorado – had more than 10% year-over-year growth. Ten states saw increased growth in the last year that matched or exceeded the country as a whole: Colorado, Florida, Hawaii, Nevada, New York, Oregon, South Carolina, South Dakota, Texas and Washington.

Just two states saw home prices depreciate: Massachusetts (down 2.1%) and Mississippi (down 0.8%).

“Low mortgage rates and stronger consumer confidence are supporting a resurgence in home sales of late,” said CoreLogic President and CEO Anand Nallathambi. “Adding to overall housing demand is the benefit of a better labor market, which has provided millennials the financial independence to form new households and escape ever-rising rental costs.”

Home prices increased by 6.7% annually in July when distressed sales were excluded. And when distressed sales were taken out of the mix, just two states showed annual price depreciation: West Virginia (down 0.3%) and Vermont (down 0.1%).

CoreLogic projects that home prices, including distressed sales, will rise 0.5% month over month from July to August, and 4.7% between July of 2015 and July of 2016.

MPA