The U.S. housing sector is gradually returning to pre-crisis levels, with the latest data revealing that the average price of a home in the country rose by 6% in the year to the end of July.
The figures from US property consultant CoreLogic, which covered single family homes, including distressed sales, show that average house prices have now risen in America for 54 consecutive months.
Despite the latest rise in home prices, the average home in the USA remains 6.1% below the peak last recorded in April 2006, but the market does appear to offer room for growth.
Investors contemplating buying property in the U.S. will be keen to learn that CoreLogic forecast that home values in the States will reach the previous high by October 2017, although this has been pushed back from its initial projection of May 2017.
For August, the company is forecasting a 0.4% month-on-month increase and a 5.4% rise for the year.
“If mortgage rates stay relatively and job growth continues as forecast, then the number of home purchases should rise in the coming year,” said Dr Frank Nothaft, the company’s chief economist.
“An increasing number of sales will push prices up. I expect to see home values continue to rise at around 5% for the coming year.”
Although the average price of a home has so far failed to hit the previous peak, values are at an all-time high in some states, with 21 posting new highest averages in July.
The five states with the highest annual price rises were Oregon (11.2%), Washington (10.2%), Colorado (9.3%), West Virginia (8.6%) and Utah (7.9%).
The five states with the most ground to make up to reach peak average prices are Rhode Island (-19%), Maryland (-19.7%), Arizona (-22.9%), Florida (-23.3%) and Nevada (-31.4%).
Only Connecticut saw property prices fall – down 1.2% in July.