Providence sees modest home price increases over last year

PROVIDENCE RANKED among the poorer performing top 40 metro areas in the country in terms of home price appreciation in the last year, according to Black Knight Financial Services, at the same time that it remains nearly 21 percent below its peak June 2006 for real estate prices. / COURTESY BLACK KNIGHT FINANCIAL SERVICES
PROVIDENCE RANKED among the poorer performing top 40 metro areas in the country in terms of home price appreciation in the last year, according to Black Knight Financial Services, at the same time that it remains nearly 21 percent below its peak June 2006 for real estate prices. / COURTESY BLACK KNIGHT FINANCIAL SERVICES

PROVIDENCE – The Providence metro area ranked 30th among the top 40 metros for home price increase in the 12 months ended October 31, according to Black Knight Financial Services’ Data and Analytics Division.

The home price index report, released Monday, is based on October 2014 residential real estate transactions. At $236,000, the HPI for the region represented a 3.4 percent increase on October 2013’s level, as well as a 3.6 percent increase from the HPI at the beginning of 2014. The highest increase in a metro area on a year-over-year basis was 10.9 percent, recorded by both San Fransisco and San Jose, Calif., with home price indexes of $582,000 and $684,000, respectively. Boston showed an increase of 4.8 percent to $369,000.

The Providence area also continued to one of the largest laggards from its peak real estate prices, which Black Knight calculated to have occurred in June 2006 with a value of $308,000. The 20.8 percent gap to that peak ranks Providence No. 27 in the nation. The largest gap is 41 percent in Las Vegas.

At the same time, October’s prices came in 0.2 percent less than September (which itself saw a 0.4 percent decline from August). The most recent drop put Rhode Island in a tie with California at No. 9 among the 50 states and the District of Columbia.
Other states in the bottom 10 were: Missouri and New Hampshire at 0.3 percent decreases, Pennsylvania (-0.4 percent); Maryland (-0.6 percent); Illinois and New Jersey (-0.7 percent); Vermont (-0.8 percent); and Connecticut (-0.9 percent).

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By comparison, Montana had the greatest average home price increase, at 0.8 percent, followed by Texas at 0.7 percent, Utah at 0.6 percent, and Wyoming, Colorado, Tennessee, Georgia and Idaho at 0.5 percent, and Kentucky and New Mexico, at 0.4 percent.

Nationwide, home prices increased 4.5 percent year over year to an average of $240,000 in October. Month over month, prices increased 0.1 percent, but as a whole the nation’s home prices are still 10.2 percent less than their June 2006 peak.

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