U.S. home prices continued their upward trajectory in April, rising 0.7% from March, according to data from the latest FNC Residential Price Index. The gain in April marks the largest price appreciation since June 2012, due largely to rising demand in the spring and summer.
More credit availability, interest rates that remain low despite quickly rising and low home prices are driving forces behind the housing recovery. Rising interest rates have most likely drawn out additional pent-up demand.
Foreclosure activity continued to decline, with distressed sales making up only 16% of total home sales, down from 17.8% in March and 21.6% a year earlier, FNC noted.
When analyzing non-distresses properties in the 100 largest metropolitan areas, the FNC 100-MSA composite index reveals that April home prices increased faster when compared to previous months.
Year-over-year, home prices rose 4.6% in April. For months, the indices have been revised downward, resulting in more moderate annual price accelerations.
Of the component markets tracked by the FNC 30-MSA composite index, 25 showed higher prices in April, with home prices up 1.0% or more in nearly a third of the markets.