Home prices posted another double digit
annual increase in March CoreLogic said today.
The company's Home Price Index (HPI) including distressed sales rose
11.1 percent compared to the HPI in March 2013 and was up 1.4 percent from
February. This was the 25th
consecutive month in which prices have increased compared to the same month one
year earlier and the 13th month in which those gains have exceeded
The index excluding distressed sales
which include short sales and sales of lender-owned real estate (REO) was up
9.5 percent from one year earlier. On a
month-over-month basis the index rose 0.9 percent.
California had the largest gain on both
the index including and the one excluding distressed sales, posting 17.2
percent growth on the first and a 13.2 percent increase on the second. Nevada's followed on both scales with price
gains of 15.5 percent and 11.8 percent respectively. Other large movers on the distressed index
were Georgia (+12.4 percent), Hawaii (+12.3 percent, and Oregon (+12.2
percent). The remainder of the top five
on the HPI scale excluding distressed sales were Florida (+10.9 percent), Maine
and Hawaii (+10.6 percent each).
Arkansas was the only state where the
HPI including distressed sales posted a loss, falling 0.3 percent. Ninety-eight of the top 100 Core Based
Statistical Areas showed year-over-year increases in their HPI. The exceptions were Little Rock-North Little
Rock-Conway, Ark., and Rochester, N.Y.
Colorado, the District of Columbia,
North Dakota, South Dakota, Texas, and Wyoming all set new price peaks during
the month. Including distressed
transactions, the peak-to-current change (April 2006 to March 2014) in the
national HPI including distressed sales was -16.0 percent in March and
excluding distressed sales it was -11.6 percent. Twenty-three states and the District of
Columbia are at or within 10 percent of their peak price.
CoreLogic is forecasting that its HPI
including distressed sales will increase 0.8 percent from March to April and
6.7 percent from March 2014 to March 2015.
The index excluding those sales is projected to rise 0.6 percent from
March to April and 5.7 percent over the 12 months ending in March 2015.
"March data on new and existing home
sales was weaker than expected and is a cause for concern as we enter the
spring buying season," said Dr. Mark Fleming, chief economist for CoreLogic.
"Interest rate-disenfranchised potential sellers are adding to the existing
shadow inventory, while buyers who can't find what they want to buy are on the
sidelines creating a new kind of 'shadow demand.' This supply and demand
imbalance continues to drive home prices higher, even though transaction
volumes are lower than expected."
"Home prices continue to rise across the
nation, but affordability, tight credit and supply concerns are becoming an
increasing drag on purchase market activity," said Anand Nallathambi, president
and CEO of CoreLogic. "In many markets - especially major metro areas like Los
Angeles, Atlanta and New York - home prices are being driven up at double-digit
rates fueled by a lack of inventory and record levels of cash purchases."