Despite a lackluster spring that went against analysts' projections, CoreLogic reported in its latest Home Price Index (HPI) that home prices, including distressed and non-distressed sales, still rose from February to March by 1.4 percent.
Without distressed sales, the HPI still reflected positive gains for the month, up 0.9 percent month-over-month.Yearly, home prices rose by 11.1 percent from March 2013 to March 2014. Excluding distressed sales, the yearly gain is slightly less at 9.5 percent.March's gain continues a 25-month consecutive streak of year-over-year home price gains."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. 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,'" said Dr. Mark Fleming, chief economist at CoreLogic."This supply and demand imbalance continues to drive home prices higher, even though transaction volumes are lower than expected," Fleming said.Moving forward, CoreLogic's HPI suggests that home prices will continue to rise, growing 6.7 percent by March 2015. CoreLogic's analysis of March also projects that home prices will continue to grow monthly, increasing 0.8 percent in April (including distressed sales).Taking out distressed sales, the company projects a 0.6 percent growth from March to April 2014.Despite gains across the board in home prices, CoreLogic tempered the good news with a more holistic assessment of prices pre- and post-crisis. The company found that home prices remain 16 percent below peaks in April 2006."Home prices continue to rise across the nation, but the affordability, tight credit and supply concerns are becoming an increasing drag on purchase market activity. 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," said Anand Nallathambi, president and CEO of CoreLogic.Excluding distressed sales, all 50 states and the District of Columbia showed year-over-year home price appreciation in March. Twenty-three states and the District of Columbia are at or within 10 percent of their price peak.Including distressed sales, the five states with the largest year-over-year price appreciation include California (17.2 percent), Nevada (15.5 percent), Georgia (12.4 percent), Hawaii (12.3 percent), and Oregon (12.2 percent). mSource: