IRVINE, Calif. (3/5/14)--Housing prices increased an unexpected 0.9% in January, according to the U.S. CoreLogic Home Price Index released Tuesday, reflecting 23 months of year-over-year increases in home prices nationally.
January's number is 12% higher than January 2012, and CoreLogic forecasts that February prices will follow suit with a 12.5% year-over-year growth rate.
"Polar vortices and a string of snowstorms did not manage to weaken house price appreciation in January," said CoreLogic Chief Economist Mark Fleming. "The last time January month-over-month and year-over-year price appreciation was this strong was at the height of the housing bubble in 2006."
Strong sales in states unaffected by winter weather contributed to the unseasonably positive pricing. According to Moody's, home prices likely will continue to increase because of investor purchases and limited completion of homes under construction (Economy.com March 4).