Inman News
24 August 2015
3 Regions of The Country See 7 Percent-Plus Appreciation
- U.S. home prices increased by 5.1 percent year over year in June.
- The San Francisco Bay Area, Texas and the Northwest have been the driving force behind the overall rise in U.S. home prices.
- U.S. home prices rose 0.9 percent spanning May to June.
On a year-over-year basis, U.S. home prices increased by 5.1 percent in June, reaching $252,000.
According to a report from Black Knight Financial Services, June’s Home Price Index (HPI) was just 5.8 percent off its June 2006 peak of $268,000 and up 26 percent from the market’s bottom in January 2012.
The San Francisco Bay Area, Texas and the Northwest have been the driving force behind the overall rise in U.S. home prices.
San Francisco and San Jose have seen year-to-year home price increases of 11.9 percent and 14.2 percent, respectively. Just to the east, Sacramento has seen a rise of 7.4 percent.
Dallas has been the best-performing market in Texas, experiencing a 9.1 percent spike in prices. Austin follows with 8.7 percent appreciation. Houston and San Antonio are also seeing better-than-average gains of 7.5 percent and 5.7 percent, respectively.
With 9.6 percent year-over-year appreciation, Portland, Oregon, remains one of the top-performing markets nationally. Its neighbor to the north, Seattle, saw a comparable spike of 8.9 percent.
Outside of these three regions, the top-performing market is Denver, which saw a 12.7 percent rise in home values.
Spanning June 2015 to June 2014, the worst-performing markets were St. Louis (-1.2 percent growth), Philadelphia (0.9 percent) and Baltimore (0.8 percent). Cincinnati, Memphis and Milwaukee also saw sub-3 percent growth.
Of the nation’s 40 largest metros, 13 hit new home price peaks in June, according to Black Knight. These markets included:
- Austin
- Boston
- Columbus
- Dallas
- Denver
- Houston
- Kansas City
- Nashville
- Pittsburgh
- Portland
- San Antonio
- San Francisco
- San Jose
Overall, U.S. home prices rose 0.9 percent spanning May to June.
Metros that saw the largest month-to-month rise included:
- Reno, Nevada (2.6 percent)
- Janesville, Wisconsin (2.4 percent)
- Detroit (2.2 percent)
- Carson City, Nevada (2.2 percent)
- Yakima, Washington (2 percent).
Four Colorado markets — Fort Collins, Pueblo, Boulder and Greeley — saw between 1.6 and 1.8 percent gains.
Month-to-month gains for the nation’s five largest metros are as follows:
- New York (1 percent)
- Los Angeles (0.4 percent)
- Chicago (0.8 percent)
- Dallas (1.1 percent)
- Houston (0.8 percent)