For the 29th straight month on a year-over-year basis, home prices increased across the nation this past July, according to newly released data from CoreLogic.
Including distressed sales, home prices countrywide jumped by 7.4 percent when contrasted with year ago levels, the Irvine, California-based property information firm reported. That marks nearly two-and-a-half years in which national home prices have risen each month when compared with the same period one year prior.
Moving forward, home prices are expected to trend in the positive direction for the foreseeable future. According to the CoreLogic Home Price Index forecast, values are anticipated to be about 6 percent higher in July of next year versus the 2014 version.
Sam Khater, CoreLogic deputy chief economist, noted that while home prices have been on a perpetually higher trend, the rate at which values have risen has been less significant more recently.
"While home prices have clearly moderated nationwide since the spring, the geographic drivers of price increases are shifting," said Khater. "Entering this year, price increases were led by western and southern states, but over the last few months, northeastern and midwestern states are migrating to the forefront of home price rankings."
Anand Nallathambi, CoreLogic president and CEO, said in virtually every state, home prices have reached levels that were last seen in 2006 during the height of the housing boom.
"Our data indicates that this trend will continue, with more states hitting new all-time peaks this year and into 2015 as the recovery continues," said Nallathambi.
New England area sees big jump in prices
As for which states saw the biggest jump in average prices, home values appreciated by more than 11 percent in Massachusetts – more than any other state – and by just under 10 percent in New York. Maine, Hawaii and California rounded out the top five states where prices increased the most, which included distressed sales, according to CoreLogic.
On the opposite end of the spectrum were those states where prices dipped. Down 36 percent, Nevada witnessed the largest peak-to-current decline in CoreLogic's HPI measure. In Florida, it dropped by 33 percent and by just under 29 percent in Arizona. Rhode Island and New Jersey witnessed declines of 27 percent and 20 percent, respectively.
Something that's usually required in the mortgage process is home insurance. However, it's important not to confuse home values with how much coverage to purchase. According to the Insurance Information Institute, the amount of coverage a home needs is based on how much it costs to rebuild a residence from scratch should it be damaged by a fire or weather disaster, for example.