The low interest rate environment following the financial crisis provided a lift to the housing market. Home prices rallied across the nation while qualified buyers enjoyed cheap financing. Last year, the strong appreciation in home values finally showed significant signs of slowing, but several states are still making new record highs.
In November, home prices increased 5.5% from a year earlier, according to a new report from CoreLogic. That marks the 33rd consecutive month of year-over-year price gains. Seven states have also surpassed their all-time highs seen during the housing bubble of yesteryear. However, CoreLogic expects national home prices to rise by 4.6% from November 2014 to November 2015, and some states setting new highs will feel the impact of crashing oil prices.
“After decelerating for most of the year, home price growth has been holding firm between a 5% and 6% growth rate for the last four months. However, pockets of weakness are clear in Baltimore and Washington D.C., and three of the top four states with the highest price appreciation are energy intensive and had been benefitting from the energy boom, which is currently receding as oil prices trend downward,” explains Sam Khater, deputy chief economist for CoreLogic. “These states — Texas, Colorado and North Dakota, may see some downward pressure on prices in 2015.”
Let’s take a look at the seven states where home prices are making new record highs.