CoreLogic Case-Shiller find 11.3% home price rise
IRVINE, Calif. – May 13, 2014 – CoreLogic released its analysis of home price trends during the fourth quarter of 2013. It covers more than 380 U.S. markets.
The CoreLogic Case-Shiller Indexes estimate that home prices increased by 11.3 percent in fourth quarter 2013 compared year-to-year. Overall, that makes U.S. home prices 20 percent above the post-recession trough reached in the fourth quarter of 2011, but they’re also about 21 percent below the peak reached in the first quarter of 2006.
However, 2013’s unusually high price rise is expected to level out a bit in 2014. The CoreLogic forecast calls for a 5.3 percent rise by the end of the year, which is still slightly above its long-term annual average of 4.5 percent recorded since 1975.
“Limited construction of new homes and low inventories of existing homes for sale contributed to the jump in prices,” says Dr. David Stiff, principal economist for CoreLogic Case-Shiller. “Developers remain cautious about building too many new houses until they see stronger demand in their markets.”
In CoreLogic’s city comparison, Miami saw the biggest year-to-year price increase for the state in fourth quarter 2013: 29.6 percent. It’s followed by Orlando (24.6 percent), West Palm Beach (23.5 percent), Fort Lauderdale (23.2 percent) and Jacksonville (13.5 percent).
However, CoreLogic’s price increase forecast for price increases looks different. It predicts that Tampa will see the state’s biggest price gains at 7.0 percent this year. It’s followed by Jacksonville (4.6 percent), Fort Lauderdale (3.9 percent), Miami (3.8 percent), West Palm Beach (3.1 percent) and Orlando (2.3 percent).
“For the remainder of 2014, investor demand and sales of foreclosed properties should drop off quickly,” Stiff say. “Traditional buyers are returning slowly to the market, but cannot replace demand from investors who led the market in recent years,” Dr. Stiff said.
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