Nationwide, annual home price growth was 10.2% greater than a year ago and 1.7% greater compared to last quarter according to Clear Capital’s Home Data Index (HDI) Market Report for August. In the West, annual home price growth was 18.6% greater than August 2012 and 2.8% greater than the prior quarter.
Despite the double-digit gains in the year-over-year comparisons, Clear Capital’s vice president of research and analytics, Dr. Alex Villacorta, points out that the HDI data is showing a trend towards price growth moderation. Villacorta stated, “…[W]e see the spread between low price tier and top price tier rates of growth the tightest since the start of the recovery. Considering the low tier price segment of the housing market led the recovery, the cooling in this segment will likely transfer through to the broader housing market. And cyclically, we are heading out of the busy buying season and into the slower fall and winter months. That’s not to say the recovery is slated to stall, rather growth patterns are likely to return to more historical rates of growth, between 4.0 percent to 5.0 percent, rather than align with bubble-like growth.” http://bit.ly/15Zv2vn