Home prices are still on the rise although the rate of increase has indeed slowed. According to a story in the Wall Street Journal(1), CoreLogic, a real estate analytical firm, released its Home Price Index for October. CoreLogic states that on a home price appreciation rise slowedmonth-to-month count, home prices rose but by only 0.2 percent from September to October.

This is part of a nearly a two year month-to-month price rise. The year-over-year accounting showed that all residential real estate, including so-called distressed property, increased by 12.5 percent from October to October.

The pace of value increases has certainly slowed over the past few months but is still an indication that the housing market is on a continued recovery and far from just a blip. Another very interesting data point found in the report is that almost half the states are now within 10 percent of their highest price peaks experienced in the last decade.

It’s important to note that the CoreLogic report identifies national, state and metropolitan statistics so wild swings in harder hit areas are to be expected. States with the highest price appreciation rates were similar to the areas most affected during the housing meltdown. Those states were Nevada, California, Georgia, Michigan and Arizona. Finally, no state in the country reported a price decrease during that same period.

What does this mean for the real estate investor? First, it means that those who first invested one to two years ago are doing quite well, thank you. And second, it means that the likelihood of another housing bubble nationally is slim as the rate of increase from month to month has been a gradual one and is expected to slow over the winter months.

For the causal real estate investor, it can mean finding a bargain will be more difficult. But for those with long term plans and with a solid business model, profits from real estate investments will, as always, be present in most any market.

  1. http://tinyurl.com/18834rd