Housing prices reach a peak

Ruth Mantell / MarketWatch /

Published Oct 2, 2013 at 05:00AM

WASHINGTON — Home-price growth accelerated to the fastest pace in more than seven years, showing gains across the country, according to a report released Tuesday.

Home prices, including distressed sales, rose about 0.9 percent in August and were up 12.4 percent from a year earlier, the highest annual rate since February 2006, according to CoreLogic, an Irvine, Calif.-based analysis firm. Excluding short sales and other distressed properties, prices rose 1 percent in August, and were up 11.2 percent from the year-earlier period, also hitting the fastest annual pace since February 2006.

The housing market in Nevada, where prices crashed during the housing crisis and remain far below peak levels, saw the largest year-over-year price growth in August. Including distressed properties, annual home-price growth in Nevada reached 26 percent.

Despite that growth, prices in Nevada in August were about 42 percent below peak. Meanwhile, the state with the lowest annual price growth, including distressed properties, was New Mexico, where prices were up 1.5 percent.

Including August’s increase and distressed properties, U.S. home prices were about 17 percent below a 2006 peak.

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