Which states are currently experiencing the fastest appreciation rates?
New data from CoreLogic shows just how fast U.S. home prices are rising, where they are heading up the fastest, and hints at where you might want to invest in real estate in the near future.
Despite the general consensus that the American property market is getting better, there is still plenty of confusion as to the direction we are heading. So what’s the real deal?
The State of the Property Market Q4 2013
The rate of foreclosure is something to keep an eye on. While they have eased in recent months, they are still happening. In fact, some statistics show that there are many billions of dollars in non-performing loans headed to default and foreclosure.
This, however, is welcome news for those that are eager to see the crisis solved by investors. Distressed homes may be recycled to launch us into a new era of prosperity.
In fact, many wish there were more REOs and auction properties to buy. It certainly isn’t slowing down the market and growth in home values.
According to CoreLogic’s new data, every single U.S. state posted an increase in home prices in September 2013. That follows seven previous straight months of double digit home price gains on a national level, and 19 months of consecutive gains.
For those concerned that the market and house prices are growing too rapidly, it is wise to point out that “Home prices are still 17.4% below their bubble peak in April 2006,” according to CoreLogic. Most people around the country are seeing a disparity much greater than that, as homes in the hottest markets are still selling for 30 to 50% below previous prices.
So where are home prices appreciating the most?
Top 10 U.S. States With The Fastest Home Price Growth:
Here are the top 10 states boasting the best average home price gains year over year:
- Nevada 25%
- California 23%
- Arizona 15%
- Georgia 14%
- Michigan 14%
- Oregon 14%
- Idaho 12%
- Florida 12%
- Washington 12%
- Utah 12%
What’s Not So Hot?
CoreLogic reports the two states posting the smallest gains for the previous year were Arkansas at 1.3 percent and West Virginia at 0.9 percent.
Of course, there are great real estate investment opportunities everywhere. It is really just about finding what’s right for you. If you are just looking for dirt cheap foreclosures and aren’t concerned about high dollar spreads or having to hold for a long period, then parts of Ohio or Chicago might be perfect. On the other hand, those looking for safer markets which ought to stay strongest the longest and provide better weather when visiting, Southern California and San Diego County might be a better match.
What’s Ahead for 2014?
What happened in the last 12 months may not be mirrored exactly in the next twelve. Some bottoming markets may actually post the biggest price gains in 2014, while areas like Manhattan, Boston and the Hamptons might see things slow to a more normal pace.
Other trends to watch may include tech in marketing, luxury home flipping, modular developments and raw land.
