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December Home Prices Up 5% Year-On-Year

appraisal-twoU.S. home prices moved ahead year-over-year for yet another month in December, bringing the market's annual growth streak closer to three straight years, according to data released Tuesday.

In its most recent Home Price Index (HPI) release, CoreLogic reported that prices advanced 5.0 percent nationwide in December compared to the same month in 2013. The estimate includes REO transactions and short sales.

The increase marked the 34th straight month of annual improvements in home prices at the national level, though gains have slowed from the double-digit returns seen in 2012 and 2013.

For all of 2014, CoreLogic reports home prices increased 7.4 percent, down from 2013's 11.1 percent jump.

"Nationally, home price growth moderated and stabilized at 5 percent for the last four months of the year," said Sam Khater, deputy chief economist for CoreLogic. "The moderation can be clearly seen at the state level, with Colorado, Texas and New York at the high end of appreciation, ending the year with increases of about 8 percent.

"This contrasts with previous appreciation rates in the double digits—for instance, Nevada and California which experienced increases of more than 20 percent earlier in 2014," he continued.

Overall, 27 states and the District of Columbia are now at or within 10 percent of their respective price peaks.

Turning to the future, CoreLogic forecasts that home prices, including distressed sales, will gain another 4.8 percent year-to-year in December 2015 and another 0.1 percent month-to-month in January—turning around after a 0.1 percent monthly drop in December.

"Nationally, home price appreciation took a pause in November and December 2014 and we expect a slow start to 2015," said Anand Nallathambi, president and CEO of CoreLogic. "As the year progresses, we expect upward pressure as low inventories and more first-time buyers drive up home prices."

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.
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