Home Price Gains Follow Job Growth; What Cities Rose?

Colorado, New York, Texas and Wyoming have hit new highs in home prices, the latest monthly tally shows.

Among big metro areas, Houston, Dallas and Los Angeles saw the top year-over-year home price appreciation.

U.S. home prices rose 5.7% in January from a year earlier and 1.1% from December, led by strong regional economies in the West, such as in Colorado and Texas, according to CoreLogic (CLGX).

CoreLogic’s home-price forecast calls for a 5.3% lift for the 12 months through January 2016.

The property analytics company’s tally shows that Colorado home prices rose 9.1% in January from a year earlier and Michigan 9%, while Texas and Wyoming each hiked 8.3%, Nevada 7.6% and California 7.3%. New York, which didn’t make the top 10 states with rising home prices, was up 5.6%.

Home prices fell in two states — Connecticut dropped 1.8%, and Maryland edged down 0.3%.

Top Cities In Home-Price Gains

Despite worries about how the falling price of oil could affect real estate, Houston rose most of all large metro areas, with a home price gain of 10.9% in January from a year earlier. The area counted is the Core Based Statistical Area, or CBSA, known as Houston-The Woodlands-Sugar Land.

(For more on the effect of oil prices on housing, see IBD’s Inside Real Estate story Will Boomtown Property Prices Waver With Oil Prices?)Next up, with a 9.1% gain, was Dallas-Plano-Irving, followed by Los Angeles-Long Beach-Glendale at 8.7%, Atlanta-Sandy Springs-Roswell at 7.5% and then Southern California’s Riverside-San Bernardino-Ontario at 5.8%.

Stocks in IBD’s Building-Residential/Commercial industry group are collectively up 4% this year and 12% from a January dip. Half a dozen stocks in the group are highly ranked, with a Composite Rating of at least 90 out of a possible 99, led by Lennar (LEN), D.R. Horton (DHI), Standard Pacific (SPF) and Toll Bros. (TOL) (Composite Ratings factor in several metrics, such as earnings growth and stock-price gains.)Related: Where Real Estate Rents Are Poised To JumpFollow Donna Howell on Twitter: @IBD_DHowell.

Source Article from http://finance.yahoo.com/news/home-price-gains-job-growth-003100515.html

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