CoreLogic released home price increases for June, and most market appear to be well on their way to a full recovery. But not all.
Home prices are continuing to rise in Illinois’s hottest real estate market, Atlanta, which bodes well for a city still struggling with undervalued properties, according to a new report from CoreLogic.
Year-over-year, Chicago home prices have seen considerable 7.9 percent gains. However, excluding distressed sales, which include foreclosures and short sales, overall price increases rose to eight percent, which suggests distressed sales are becoming less and less desirable.
In July, Chicago Agent reported that home prices in the city, despite post-crisis improvements, had failed to return to normal levels, remaining 14 percent undervalued relative to established fundamentals. These gains should help push Chicago towards sustainable normality.
Slow and Steady
Nationally, home prices continued to rise at a pace indicative of a slow, but steady return to stability. The CoreLogic report found:
- Home prices, including distressed sales, increased 7.5 percent in June 2014 compared to the same time last year, representing 28 months of consecutive year-over-year increases.
- Month-over-month, home prices, including distressed sales, increased only one percent, which signifies a slowing pace and a return to a healthier, balanced market.
- Excluding distressed sales, year-over-year home prices increased 6.9 percent.
Returning to Normalcy
By June 2015, CoreLogic projects that home prices, including distressed sales, will have increased by 5.7 percent, and Mark Fleming, chief economist for CoreLogic, considering current trends, fully expects this pace to hold steady.
“Home price appreciation continued moderating in June with its slight month-over-month increase,” Fleming says. “This reversion to normality that we are finally experiencing is expected to continue across the country and should further alleviate concern over diminishing affordability and the risk of another asset bubble.”
Still, Anad Nallathambi, president and CEO of CoreLogic, remarks that some areas are not out of the woods yet.
“Home prices are continuing to rise, fueled by ongoing tight supply, low rates and aggressive investor buying on the East and West Coasts,” Nallathambi says. “The expected surge in the number of homes for sale has not materialized to date as many homeowners are staying put and waiting for better economic times and higher prices in the future.”