Home prices continue to improve
As they have for most of 2013, home prices are on the mend, which is news homeowners have been waiting for since the housing crash began. According to CoreLogic, home prices (including distressed sales) rose 2.6 percent for the month, and 12.2 percent year over year in May, representing the largest annual increase since February 2006, marking the 15th consecutive month of home price increases.
“It’s been more than seven years since the housing market last experienced the increases that we saw in May, with indications that the summer months will continue to see significant gains,” said Dr. Mark Fleming, chief economist for CoreLogic. “As we approach the half-way point of 2013, home prices continue to respond positively to the reductions in home inventory thus far.”
The future continues to look bright, as CoreLogic is projecting that home prices will grow another 13.2 percent year over year in June, including distressed sales, and 2.9 percent for the month.
“Home price appreciation, particularly in much of the western half of the U.S., is increasing at a torrid pace,” said Anand Nallathambi, president and CEO of CoreLogic. “Across the country, pent up demand and continued low interest rates are fueling strong demand for a limited inventory of properties. We expect that trend to continue to drive up prices throughout the balance of the summer months.”
Regional performance varied
Nevada, California, Arizona, Hawaii, and Oregon had the highest appreciation levels, including distressed sales, but when distressed sales are excluded, Hawaii is replaced by Idaho on the list.
Including distressed sales, Delaware and Alabama saw depreciation in May, but when excluding distressed sales, no states posted depreciation.