A familiar trend emerged again in home prices across the nation for August, according to CoreLogic’s just-released update.
Prices are still showing healthy gains, but at a slower pace. Prices seem to have settled at the 6 percent year-over-year mark.
But that level will decline further. CoreLogic projects that national home prices will rise 5.2 percent year-over-year from August 2014 to August 2015.
Despite modest gains in August, home prices nationwide remain 12.1 percent below their peak, which was set in April 2006.
“The pace of year-over-year appreciation continues to slow down as real estate markets find more balance,” said Mark Fleming, chief economist for CoreLogic. “Home price appreciation reached a peak of almost 12 percent year-over-year in October 2013 and has since subsided to the current pace of 6 percent.”
This moderation of home price appreciation, Fleming adds, is a “welcomed sign of more balanced real estate markets.” It also reduces pressure on affordability for potential home buyers.
Affordability is becoming a major issue. Hourly wages have risen just 2.3 percent over the past 12 months, the Labor Department reported last week. Statistics also show that median incomes for an entire household are 8 percent below their 2007 levels after adjusting for inflation, averaging just $51,939 in 2013, according to the Census Bureau.
On a month-over-month basis, home prices increased by 0.3 percent in August, compared to July’s figures. Even when excluding distressed sales — short sales and REO transactions — home prices gained by the same among, 0.3 percent, from July to August.