Search

Home Price Gains Cooling Off Quickly

by devteam July 1st, 2014 | Share

Homernprices enjoyed a 27th straight month of year-over-year growth in MayrnCoreLogic said today, but noted that those gains are no longer in the doublerndigits.  The company’s Home Price Indexrn(HPI) including distressed home sales was 8.8 percent higher than in May 2013rnand rose 1.4 percent from the April level. rnThe HPI excluding distressed sales was up 8.1 percent from one yearrnearlier and 1.2 percent from April.  </p

 </p

</p

 </p

The national HPI Includingrndistressed transactions is now 13.5 percent below its peak in April 2006.  Excluding distressed transactions, thernpeak-to-current change in the HPI for the same period was -9.3 percent.</p

“The pace of home pricernappreciation is cooling off quickly as the weather warms up,” said MarkrnFleming, chief economist for CoreLogic. “May’s 8.8 percent year-over-yearrngrowth rate is down almost three percentage points from just three months ago.rnThe influences of modestly rising inventory and less-than-expected demand arerncausing price growth to moderate toward our forecasted expectations.”</p

Thernincreases were national in scope.  Everyrnstate posted in increase in both HPIs in May and 25 states and the District ofrnColumbia were within 10 percent of their pre-recession peak home price on thernindex including distressed sales.  Tenrnstates set new price peaks in May, Alaska, Louisiana, Oklahoma, Nebraska, Iowa, South Dakota, NorthrnDakota, Colorado, Texas and New York.  Texas and Colorado have set new peaks onrnalmost a monthly basis since last fall.</p

 </p

</p

Including distressed sales,rnthe five states with the highest home price appreciation were:  Hawaii (+13.2 percent), California (+13.1rnpercent), Nevada (+12.6 percent), Michigan (+11.8 percent) and New York (+11.0rnpercent).</p

Excluding distressed sales, the fivernstates with the highest home price appreciation were: New York (+12.2 percent),rnHawaii (+11.6 percent), Nevada (+10.6 percent), California (+10.4 percent) andrnFlorida (+9.6 percent).</p

The CoreLogic Forecast HPI is for home prices, including distressed sales, to increase 0.8rnpercent month over month from May 2014 to June 2014 and, on a year-over-yearrnbasis by 6.0 percent from May 2014 to May 2015. Excluding distressed sales,rnhome prices are expected to rise 0.7 percent month over month from and by 5.1rnpercent year over. CoreLogic bases its forecast on the CoreLogic HPI and otherrneconomic variables. Values are derived from state-level forecasts by weightingrnindices according to the number of owner-occupied households for each state.</p

“Home prices are continuingrnto climb across most of the country which has both positive and negativernimplications for the housing market,” said Anand Nallathambi, president and CEOrnof CoreLogic. “While the rapid rise in prices over the past two years hasrnlifted many homeowners out of negative equity, it has also become a negativernfactor in buying decisions for prospective purchasers weighing affordabilityrnconcerns. As we move ahead, a moderation in home price increases over the nextrntwelve months should help cool things down a bit and keep the housing recoveryrngoing.”</p

Ninety-four of the top 100 CorernBased Statistical Areas (CBSAs) measured by population showed year-over-yearrnincreases in May 2014. The six CBSAs that did not show an increase were: Worcester,rnMass.-Conn.; Hartford-West Hartford-East Hartford, Conn.; New Haven-Milford,rnConn.; Little Rock-North Little Rock-Conway, Ark.; Rochester, N.Y. andrnWinston-Salem, N.C.

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.

About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

See all blogs
Share

Comments

Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...