U.S. home values have increased 6.3 percent so far this year, a reflection of the shrinking number of homes for sale and more aggressive buyers, according to an analysis of available data. But those gains vary from state to state, a trend that will likely continue into the new year.
Only nine states in the U.S. recorded average home price gains that exceeded the national average. Just missing the cutoff was Tennessee, which so far has seen year-over-year growth averaging 6.1 percent. The rest of states and the District of Columbia fell below the national average, with Connecticut posting the only year-over-year home value decline in the country, with prices slipping 0.1 percent.
Four of the five states with the worst home price gains were along the East Coast: Connecticut, New Jersey, Maryland and Delaware. Alaska rounded out the five.
While New York and South Dakota didn’t record annual home price increases that outpaced the national average, their housing markets are showing strong momentum. The average price gain in South Dakota in the three most recent months was 7.4 percent. In New York, it was 7 percent, while the national average was just 6.4 percent.
Home price changes were estimated using CoreLogic’s monthly home price index for January through October, the most recent data available. The estimates could change when the November and December data are released next year.