2013 Home Prices Up 20%+ in Seven U.S. Cities

24/7 Wall St.

Home prices in seven U.S. metropolitan areas rose at least 20% in 2013, according to the latest CoreLogic Case-Shiller home price index. The seven are Las Vegas (25.6%) and six California cities: Riverside (23.8%), Oakland (23.3%), Sacramento (23.0%), Los Angeles (20.3%), San Jose (20.1%) and San Francisco (20.0%).

House prices across the country rose 11.3% in the fourth quarter of 2013, compared with the same period in 2012, but remain 21% below the peak reached in the first quarter of 2006.

Overall, 308 of 384 U.S. metro areas posted price gains between the fourth quarter of 2012 and the fourth quarter of 2013. In those areas with populations greater than 1 million, every city either posted a gain or remained flat with the previous year.

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For the current year, the CoreLogic Case-Shiller index is expected to post a home price gain of 5.3%, less than half the 2013 gain. Over the next five years, home prices are expected to rise at an annual rate of 3.1%.

The CoreLogic Case-Shiller principal economist said:

Limited construction of new homes and low inventories of existing homes for sale contributed to the jump in prices. Developers remain cautious about building too many new houses until they see stronger demand in their markets.

Metro areas with highest projected home price increases for 2014 are Tucson (11.4%), Rochester (9.0%), Hartford (8.9%), Memphis (8.6%) and Baltimore (8.2%). The five metro areas projected to post the smallest annual increases are Sacramento (1.7%), Nashville (1.8%), Warren, Mich. (1.9%), Virginia Beach (2.0%) and Detroit (2.2%).

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