CoreLogic: R.I. home prices up 2.6% in September

PROVIDENCE – Rhode Island home prices increased 2.6 percent over the 12-month period through September, but were below the national year-over-year increase of 5.6 percent, according to Home Price Index data released Tuesday by CoreLogic.
The Providence-Warwick area showed a similar upward trend, with prices increasing by 2.5 percent in September compared with September 2013’s numbers.
The numbers include distressed sales, which include short sales and real estate owned transactions.
Despite the continuing home price increases, Rhode Island remains among the five states with the largest peak-to-current price declines, including distressed transactions. Nevada topped the list with a 36.6 percent drop, followed by Florida (-34.1 percent), Arizona (-29.6 percent), Rhode Island (-27.9 percent) and Maryland (-21.2 percent). Including distressed transactions, peak-to-current change in the national home price index (from April 2006 to September 2014) was -12.6 percent.
CoreLogic said that the latest nationwide home price increase represents 31 months of consecutive year-over-year increases in home prices.
But on a month-over-month basis, nationwide prices dropped one-tenth of a percentage point from August to September. In the Providence-Warwick area, the change was greater, with prices dropping four-tenths of a percentage point.
“Home prices continue to rise compared with this time last year but the rate of growth is clearly slowing as we exit 2014,” Anand Nallathambi, president and CEO of CoreLogic, said in a statement. “With more positive macro-economic trends emerging in the U.S., we are forecasting moderate price growth for 2015.”
CoreLogic said that home prices are expected to rise 5 percent from September 2014 to September 2015.
The report also said that the five states with the highest home appreciation in September were Michigan (+10.3 percent), Montana (+10 percent), Maine (+9.6 percent), Massachusetts (+8.8 percent) and California (+8.5 percent).

Sam Khater, deputy chief economist at CoreLogic, said that there “has been a clear bifurcation in home price growth for lower-end versus upper-end properties in 2014.”
“As of December 2013, both lower-end and upper-end property prices were up 9.7 percent on a year over year basis. As of September, lower-end prices were up 9.4 percent but upper-end prices were up only 4.5 percent,” Khater said.

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