U.S. home prices increased 1.0% in June, compared to May, and were up 7.5% compared to June 2013, according to CoreLogic's Home Price Index (HPI).
The report shows that home price appreciation continued to slow in June. In fact, monthly price appreciation has averaged between 1% and 2% since the start of this year. As a result, the year-over-year gains are currently nowhere near as dramatic as the double-digit increases seen in the first quarter.
Excluding distressed sales, home prices were up 0.9% compared to May and were up 6.9% compared to June 2013.
The recent slowdown in home price appreciation has some analysts predicting that certain markets will soon start seeing prices depreciate. For example, a recent report from Veros Real Estate Solutions predicts that up to 20% of U.S. homes will see price depreciation over the next year.
As per the CoreLogic HPI, some states are already starting to see price appreciation turn negative. For example, Arkansas saw home prices decline 0.4%, compared to May. However, it was the only state to see home prices decline.
All states saw home prices increase on a year-over-year basis in June, according to the report. What's more, a total of 12 states – Alaska, Colorado, Iowa, Louisiana, Nebraska, North Dakota, Oklahoma, South Dakota, Tennessee, Texas, Vermont and Wyoming, as well as the District of Columbia – saw their home prices reach new highs.
CoreLogic forecasts that home prices, including distressed sales, will increase 0.7% from June to July. Excluding distressed sales, home prices are expected to rise 0.6%, month over month.
CoreLogic predicts that U.S. home prices will continue to rise by as much as 5.7%, including distressed sales, over the next 12 months.
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