Home Prices Increase Just Slightly in October!

In the Portland metro, home prices were up one-third of a percent in October, CoreLogic said, similar to the increase reported in September.

 

One reason for the slowdown is that the figures aren't adjusted for seasonal patterns. Prices usually decline in the fall and winter, when sales slow.

 

Home prices have risen 12.5 percent from a year ago, and 15.2 percent in Portland. The increase could encourage more sellers to put their homes on the market, easing a shortage of homes for sale.

 

Only 1.88 million homes were on the market at the end of October, down 2.1 percent from the previous month and the fewest since March.

 

The shortage of inventory has affected sales. Home re-sales fell in October for a second straight month to a seasonally adjusted annual pace of 5.12 million, the lowest since June, according to the National Association of Realtors. That pace is still 6 percent higher than it was a year earlier. But it's below the roughly 5.5 million sold each year in healthier markets.

 

According to CoreLogic, prices rose in October from the previous year in all states except New Mexico. The biggest gains were in Nevada (25.9 percent), California (22.4 percent), Georgia (14.2 percent), Michigan (14.1 percent) and Arizona (14 percent).

 

Nationwide, home prices are approximately 17 percent below the peak reached in April 2006, according to CoreLogic.

 

See The Associated Press, December 3, 2013, for full article