As the housing market continues to improve the average home price nationwide increased another .3% last month according to CoreLogic. Just as importantly, each individual state showed a rise in home values, a good indicator that the market continues to improve across the board. Although this is good news for sellers, the market continues to stabilize as increases in home values from month to month are lessening. This could be an indication that future purchase prices for buyers may be more predictable and less apt to show dramatic increases.
The states that showed the highest increase in home values for the month of August (including the sale of distressed properties) were Michigan (+11.1%), California (+9.2%), Nevada (+9.2%), Maine (+9%) and West Virginia (+8.7%). NOT including distressed home sales, the states boasting the biggest increase were Massachusetts (+9.4%), Maine (+9.3%), West Virginia (+8.9%), Hawaii (+8.7%) and South Carolina (+8.1%).
It’s interesting to note that of the top 100 most populated areas, 98% showed increases in home values. The only 2 areas that did not show an increase were Little Rock-North Little Rock-Conway, Ark. and Rochester, N.Y. CoreLogic predicts further stabilization in the market and expects an average increase of .2% in September nationwide.
I consider this to be an opportune time for both buyers and sellers. Although home prices are on the rise, the increases are quite moderate and there is no great incentive to wait for sellers. On the same hand, there are no expectations that prices will go down in the near future making this a good time for home buyers to invest.