Friday, April 10, 2015

Home Prices Heat Up for Spring

Home prices are on the move this spring, as many markets inch closer to prices they haven't reached since the peak during the housing boom. Twenty-six states as well as the District of Columbia were at or within 10 percent of their peak home prices, according to the February 2015 CoreLogic Home Price Index, which has measured home prices dating back since January 1976.
Six states reached new price highs in January, including:
  • Colorado: +9.8%
  • New York: +8.2%
  • North Dakota: +7.7%
  • Texas: +8.5%
  • Wyoming: +8.4%
  • Oklahoma: +5.2%
NAR's Existing-Home Sales Report: Home Prices Surge to Fastest Pace in Year
Nationwide, CoreLogic’s home price index, including distressed sales, showed home prices rose 5.6 percent in February year-over-year. That marks three years of consecutive year-over-year increases in home prices.
"This is the hottest home price appreciation prior to the spring selling season in nine years," says Anand Nallathambi, president and CEO of CoreLogic.
If interest rates continue to remain low and consumer confidence stays strong, CoreLogic housing analysts predict that home prices will rise an additional 5 percent over the next 12 months.
"Since the second half of 2014, the dwindling supply of affordable inventory has led to stabilization in home price growth with a particular uptick in low-end home price growth over the last few months," says Frank Nothaft, chief economist for CoreLogic.
From February 2014 to February 2015, low-end home prices climbed by 9.3 percent compared to 4.8 percent for high-end home prices -- a gap that is three times the average historical difference, according to CoreLogic’s housing data.
The following five states posted the highest home price appreciation (including distressed sales) year-over-year, according to CoreLogic’s latest index:
  • Colorado: +9.8%
  • South Carolina: +9.3%
  • Michigan: +8.5%
  • Texas: +8.5%
  • Wyoming: +8.4%

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