Home Prices Continue Upward Climb in April

Climber

In its latest Home Price Index, CoreLogic reported that home prices continue to rise across the nation, with more increases to come in 2015.
The company reported that home prices, including distressed sales, increased 10.5 percent in April from the previous year. The company projects home prices will continue to increase by 1.0 percent month-over-month in May. Furthermore, national home prices are expected to rise by 6.3 percent from April 2014 to April 2015.
“The weakness in home sales that began a few months ago is clearly signaling a slowdown in price appreciation. The 10.5 percent increase in April, compared to a year earlier, was the slowest rate of appreciation in 14 month,” said Sam Khater, deputy chief economist for CoreLogic.
April marks the 26th consecutive month of year-over-year home price gains. Excluding distressed sales, CoreLogic found that home prices increased by 8.3 percent year-over-year.
Unfortunately, despite the modest April gains, home prices across the nation remain 14.3 percent below their August 2006 peak.
“Home prices are continuing to rise as we head into the summer months. The purchase market continues to suffer from a dearth of inventory which we expect will continue to drive prices up over the year,” said CoreLogic president and CEO, Anand Nallathambi.
Excluding distressed sales, all 50 states and the District of Columbia showed year-over-year home price appreciation in April. The company found that 23 states and the District of Columbia are at or within 10 percent of their peak.
Including distressed sales, the five states registering the largest year-over-year home price appreciation in April were California (15.6 percent), Nevada (14.8 percent), Hawaii (14.1 percent), Oregon (11.8 percent), and Michigan (11.3 percent).
States remaining the furthest from peak values in April include: Nevada (-38.6 percent), Florida (-34.5 percent), Arizona (-29.5 percent), Rhode Island (-28.8 percent), and West Virginia (-24.2 percent).
DSNews – Colin Robins June 3, 2014Climber