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April Price Increase was Smallest in 14 Months
Home prices posted a 26th consecutive month of
year-over-year increases in April on the CoreLogic Home Price Index (HPI) Prices nationwide, including those of
distressed homes sold during the month, increased 10.5 percent compared to the
HPI in April 2013. However, this is the
smallest year-over-year increase since February 2013. There was a 2.1 percent increase compared to
the HPI in March.
The five states with the highest year-over-year home price
appreciation on this index were California (+15.6 percent), Nevada (+14.8
percent), Hawaii (+14.1 percent), Oregon (+11.8 percent) and Michigan (+11.3
The HPI excluding short sales and sales of lender owned real
estate (REO) showed home prices increasing 8.3 percent from the previous April
and 1.1 percent month-over-month. States with the highest home price
appreciation were: Hawaii (+13.0 percent), California (+11.4 percent), Nevada
(+11.1 percent), New York (+10.3 percent) and Florida (+10.2 percent).
The improvement in home prices continues to be broad based
with no states posting depreciation on either the distressed or non-distressed
index. Including distressed
transactions, the peak-to-current change in the national HPI (from April 2006
to April 2014) was -14.3 percent. Excluding distressed transactions, the
peak-to-current change for the same period was -10.8 percent.
Eight states established new home price peaks (Colorado,
Louisiana, Nebraska, Oklahoma, North Dakota, South Dakota, Texas, and Wyoming)
and another 15 states and the District of Columbia are at or within 10 percent
of previously established peak prices.
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Only five of the top 100 Core Based Statistical Areas
(CBSAs) measured by population did not show annual price increases in April. They were the Hartford area, Milwaukee, Little
Rock, Worcester, Massachusetts; and New Haven.
Even with continued price increases and with new peaks being
established, CoreLogic notes that the trajectory is changing. Sam
Khater, the company's deputy chief economist said, "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
CoreLogic's HPI Forecast predicts that home prices,
including distressed sales, will increase 1.0 percent in May compared to April
and by 6.3 percent on an annual basis.
Excluding distressed sales the company's HPI should rise 0.8 percent
from April to May and 6.3 percent compared to May 2013.
"Home prices are
continuing to rise as we head into the summer months," said Anand Nallathambi,
president and CEO of CoreLogic. "The purchase market continues to suffer from a
dearth of inventory which we expect will continue to drive prices up over the
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