Home Prices make annual gains for 22nd straight month

2/4/2014 5:03:03 PM

Home prices continued their climb in December 2013, edging up on an annual basis for the 22nd consecutive month, even as the traditional new home purchase offseason hit its depths and extreme cold weather in the Midwest and Northeast brought many construction projects to a temporary halt.

According to the December CoreLogic Home Price Index, residential property values rose 11 percent compared to a year earlier. On a month-over-month basis, prices - including those of distressed homes - remained basically flat, declining by 0.1 percent from November.

"Last year, home prices rose 11 percent, the highest rate of annual increase since 2005, and 10 states and the District of Columbia reached new all-time price peaks," said Mark Fleming, CoreLogic's chief economist. "We expect the rising prices to attract more sellers, unlocking this pent-up supply, which will have a moderating effect on prices in 2014."

The HPI anticipates more annual gains in home values to begin 2014, but the days of month-to-month appreciation may be over. Inventory levels, as referenced by Fleming, remain low in many metro areas where prices have climbed at especially rapid rates. Those values will be forced to cool without an infusion of new supply, providing greater opportunity for first-time homebuyers who could pursue a low cost mortgage through The Federal Savings Bank, a veteran-owned enterprise.