Home Prices Inched Up Again In August, But Many Areas Saw Declines

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U.S. home prices continued to hold steady during the month of August, rising just 0.1% compared to July, according to Black Knight's Home Price Index (HPI) Report.

The average price for a home in the U.S. was $241,000 – up about 4.6% from $231,000 in January, but down about 10.1% compared to the peak of $268,000 in June 2006.

States that saw the biggest increases in home price appreciation included New York (0.6%), Michigan (0.6%), Nevada (0.6%), South Carolina (0.5%) and Texas (0.5%).

States that saw the biggest declines in home price appreciation in August included Wisconsin (-0.5%), Missouri (-0.5%), Virginia (-0.5%), District of Columbia (-0.4%) and Georgia (-0.4%).

Metro areas that saw the biggest increases in home price appreciation in August included Detroit (0.9%); The Villages, Fla. (0.9%); Myrtle Beach, S.C. (0.8%); Reno, Nev. (0.8%); and Naples, Fla. (0.7%).

Metro areas that saw the biggest declines in home prices appreciation included Atlantic City, N.J. (-0.7%); Torrington, Conn. (-0.7%); Milwaukee (-0.7%); St. Louis (-0.7%); and Ocean City, N.J. (-0.7%).

As the report reveals, home price appreciation continues to be strong in certain areas, while in others prices are starting to drop. Nearly half of the 20 largest states saw home prices decline, on average, in August. Meanwhile, eight of the 40 largest metro areas saw home prices hit new peaks.

Results of the S&P/Case-Shiller HPI are due out later this week.

Meanwhile, the Federal Housing Finance Agency (FHFA) last week released its HPI report, which shows that U.S. home prices inched up 0.5% in August, compared to the previous month, and were up 4.8% compared to August 2013.

The FHFA noted that it had upwardly revised its HPI figures for July to represent a 0.2% increase. Previously, it had reported a 0.1% increase for July.

Still, home prices are about 5.8% below their April 2007 peak, according to the FHFA.

The two reports use different methodologies to arrive at their findings.

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