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.