April Price Increase was Smallest in 14 Months

Home prices posted a 26th consecutive month ofrnyear-over-year increases in April on the CoreLogic Home Price Index (HPI)  Prices nationwide, including those ofrndistressed homes sold during the month, increased 10.5 percent compared to thernHPI in April 2013.  However, this is thernsmallest year-over-year increase since February 2013.  There was a 2.1 percent increase compared tornthe HPI in March.</p

The five states with the highest year-over-year home pricernappreciation on this index were California (+15.6 percent), Nevada (+14.8rnpercent), Hawaii (+14.1 percent), Oregon (+11.8 percent) and Michigan (+11.3rnpercent).</p

The HPI excluding short sales and sales of lender owned realrnestate (REO) showed home prices increasing 8.3 percent from the previous Aprilrnand 1.1 percent month-over-month.   States with the highest home pricernappreciation were: Hawaii (+13.0 percent), California (+11.4 percent), Nevadarn(+11.1 percent), New York (+10.3 percent) and Florida (+10.2 percent).</p

The improvement in home prices continues to be broad basedrnwith no states posting depreciation on either the distressed or non-distressedrnindex.  Including distressedrntransactions, the peak-to-current change in the national HPI (from April 2006rnto April 2014) was -14.3 percent. Excluding distressed transactions, thernpeak-to-current change for the same period was -10.8 percent.</p

Eight states established new home price peaks (Colorado,rnLouisiana, Nebraska, Oklahoma, North Dakota, South Dakota, Texas, and Wyoming)rnand another 15 states and the District of Columbia are at or within 10 percentrnof previously established peak prices.</p

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Only five of the top 100 Core Based Statistical Areasrn(CBSAs) measured by population did not show annual price increases in April.  They were the Hartford area, Milwaukee, LittlernRock, Worcester, Massachusetts; and New Haven.</p

Even with continued price increases and with new peaks beingrnestablished, CoreLogic notes that the trajectory is changing.   SamrnKhater, the company’s deputy chief economist said, “The weakness in home salesrnthat began a few months ago is clearly signaling a slowdown in pricernappreciation.  The 10.5 percent increase inrnApril, compared to a year earlier, was the slowest rate of appreciation in 14rnmonths.”</p

CoreLogic’s HPI Forecast predicts that home prices,rnincluding distressed sales, will increase 1.0 percent in May compared to Aprilrnand by 6.3 percent on an annual basis. rnExcluding distressed sales the company’s HPI should rise 0.8 percentrnfrom April to May and 6.3 percent compared to May 2013.  </p

 “Home prices arerncontinuing to rise as we head into the summer months,” said Anand Nallathambi,rnpresident and CEO of CoreLogic. “The purchase market continues to suffer from arndearth of inventory which we expect will continue to drive prices up over thernyear.”

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