Two recent reports indicate home prices are reaching new peaks. Analyst services, Black Knight and CoreLogic, both came in with improved valuations for homes sold during the month of December.
In the case of the Black Knight report, it appears that New York State made the biggest gains. That is having a spillover effect to the adjacent regions, specifically to New Jersey. Connecticut doesn’t seem to be reaping any of the benefits from New York City’s frothy real estate prices. Westchester as a whole has been experiencing record sales volume — and record low inventory — in recent years because of a number of buyers who’ve been priced out of New York City.
The New York Times recently ran a story identifying that many New York City residents are finding the prices in the Big Apple to be unacceptable and unmanageable. According to many of the real estate professionals, there seems to be a migration away from New York City into regions surrounding the city. According to the story, over the past 25 years, the number of people commuting into the city has increased by 25%. In addition to the trains, bus trips have grown by more than 80%.
The Black Knight report indicated a 6.6% year-over-year, game-raising average sale climbing to $283,000 in December. This is a 68th consecutive month of annual home price appreciation. Also according to the report, for six of the nation’s 20 largest states, this is a new peak.
The states recording the largest month-over-month home price appreciation were, in order, New York, Georgia, North Carolina, Illinois, and Texas.