CoreLogic: R.I., Providence metro home prices increase in August

CORELOGIC released data on Tuesday showing that Rhode Island home prices increased 3.3 percent in August compared with August 2013's prices. / COURTESY CORELOGIC
CORELOGIC released data on Tuesday showing that Rhode Island home prices increased 3.3 percent in August compared with August 2013's prices. / COURTESY CORELOGIC

PROVIDENCE– Rhode Island home prices increased 3.3 percent over the 12-month period through August, but were below the national year-over-year increase of 6.4 percent, according to Home Price Index data released Tuesday by CoreLogic.
The national year-over-year increase of 6.4 percent, which includes distressed sales, represents 30 consecutive months of such gains. In fact, when including distressed sales, which are short sales and real estate-owned transactions, all states showed year-over-year home price appreciation in August, according to CoreLogic.
On a month-over-month basis, Rhode Island saw a seven-tenths of a percent increase in August, greater than the three-tenths of a percent gain nationally.
The Ocean State saw a year-over-year increase in home prices of 2.8 percent in July, according to CoreLogic.

Despite the continuing home price increases, however, Rhode Island remains among the five states with the largest peak-to-current price declines, including distressed transactions. They were: Nevada (-36.2 percent), Florida (-33.4 percent), Arizona (-28.9 percent), Rhode Island (-26.8 percent, from its October 2005 peak price) and Maryland (-20.2 percent). Including distressed transactions, peak-to-current change in the national home price index (from April 2006 to August 2014) was -12.1 percent.

The Providence-Warwick metro area saw a similar year-over-year gain in home prices, with an HPI gain of 3.2 percent for the 12-month period and a 0.6 percent increase from July to August.

“The pace of year-over-year appreciation continues to slow down as real estate markets find more balance. Home price appreciation reached a peak of almost 12 percent year-over-year in October 2013 and has since subsided to the current pace of 6 percent,” Mark Fleming, chief economist at CoreLogic, said in a statement. “Continued moderation of home price appreciation is a welcomed sign of more balanced real estate markets and less pressure on affordability for potential home buyers in the near future.”

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“Home prices continue to rise, albeit more slowly, across most of the U.S.,” Anand Nallathambi, president and CEO of CoreLogic, added. “Major metropolitan areas such as Riverside and Los Angeles, Calif., and Houston continue to lead the way with strong price gains buoyed by tight supplies and a gradual rebound in economic activity.”

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