Spring buying season is here, but a mixture of week reports and nonstop rising home prices is causing some industry leaders to be cautious.
According to CoreLogic’s (CLGX) March HPI index, home prices rose year-over-year for 25 months straight in March.
Home prices nationwide, including distressed sales, grew 11.1% in March from one year prior.
Month-over-month, home prices, including distressed sales, increased 1.4% in March compared to February.
“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 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,” Fleming said.
And this is staring to disseminate across the nation. See the next page for how.
Top five states with the highest home price appreciation, including distressed sales:
1. California (17.2%)
2. Nevada (15.5%)
3. Georgia (12.4%)
4. Hawaii (12.3%)
5. Oregon (12.2%)
Top five states with the largest peak-to-current declines, including distressed transactions:
1. Nevada (-39.9%)
2. Florida (-36.3%)
3. Arizona (-30.3%)
4. Rhode Island (-28.1%)
5. Illinois (-26.5%)
Nearly half of the nation is at or within 10% of their peak home price appreciation, with 23 states making the list.
Looking ahead, the CoreLogic HPI forecast indicates that home prices, including distressed sales, are projected to increase 0.8% month over month from March 2014 to April 2014 and by 6.7% from March 2014 to March 2015.
“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,” Nallathambi said.