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C G Barbeau(949) 784- 9699
NMLS 324982
Mortgage Consultant
Eagle Home Mortgage
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Supply and Demand
Pushing Home Prices Higher
Tuesday, May 5, 2015
Nationwide home prices are now
within 10 percent of their pre-crash peaks
and seven states have surpassed those peaks, some have been establishing new
high marks for several months. CoreLogic said today that its Home Price
Index (HPI) that tracks that home prices nationwide, including distressed
sales, rose in March for the 37
th consecutive month on a
year-over-year basis.
The HPI was
up 5.9 percent in March 2015 compared with March 2014 a
+2 percent change from the year over-year HPI increase in February. The
March HPI was also up 2 percent compared to the previous month.
The
states with the
greatest increase in its HPI including
distressed sales were: Colorado (+9.2 percent), South Carolina (+9.1 percent),
Kansas (+8 percent), Texas (+8 percent) and Nevada (+7.6 percent). Two
states and the District of Columbia experienced home price depreciation;
Connecticut was down 0.6 percent, the District of Columbia decreased 0.2
percent and Maryland was off 0.1 percent.
Excluding distressed sales, home prices increased by 6.1 percent in
March 2015 compared with March 2014 and increased by 2 percent month over month
compared with February 2015. The five states with the highest home price
appreciation were: Kansas (+9.5 percent), Colorado (+8.5 percent), South Carolina
(+8.2 percent), Florida (+7.9 percent) and Texas (+7.6 percent). Only New
Mexico (-0.4 percent) showed year-over-year depreciation on the HPI excluding
distressed sales which include short sales and real estate-owned (REO)
transactions.
"The homes for sale inventory continues to be
limited while
buyer demand has picked up with low mortgage rates and improving consumer
confidence," said Frank Nothaft, chief economist for CoreLogic. "As a
result, there has been continued upward pressure on prices in most markets,
with our national monthly index up 2 percent for March 2015 and up
approximately 6 percent from a year ago."
HPI including distressed sales will
increase by 0.8 percent from March to April 2015 and by 5.1 percent from March
2015 to March 2016. For the HPI excluding distressed sales the monthly
increase is predicted at 0.7 percent and the annual increase from March 2015 to
March 2016 at 4.7 percent this per Corelogic
"All signs are pointing toward
continued price appreciation
throughout 2015. In fact, the strong month-over-month gain in March may be
a harbinger of accelerating price appreciation as we enter the spring selling
season," said Anand Nallathambi, president and CEO of CoreLogic.
"Tight inventories, job growth and the inexorable impact of demographics
and household formation are pushing price levels in many states, and especially
large metropolitan areas like Dallas, Denver, Houston, Seattle and San
Francisco, toward record levels."
Including distressed transactions, the peak-to-current change in the
national HPI (from April 2006 to March 2015) was
-11 percent. Excluding
distressed transactions, the peak-to-current change for the same period was
-6.7 percent. The peak-to-current declines were greatest in Nevada (-34.7
percent), Florida (-31.5 percent), Rhode Island (-29 percent), Arizona (-27.4
percent) and Connecticut (-25.5 percent).
Ninety of the top 100 Core Based Statistical Areas (CBSAs) measured by
population showed year-over-year increases in March 2015. The 10 exceptions
were the metropolitan areas that contain Baltimore, Philadelphia, Camden,
New Jersey; Hartford, New Orleans, Rochester, Worcester,
Massachusetts; Albany, New Haven, and Wilmington, Delaware.