Home prices increase into second year
Home prices, including distressed sales, jumped 12.2% in February 2014 compared to a year prior, marking 24 months of consecutive year-over-year increases in home prices nationally, the latest CoreLogic report said.
Month-over-month it slightly increased by 0.8% in February compared to January.
And the same level of ferocity is seen at the state level.
Fourteen states showed double-digit growth year-over-year, in addition to 22 states posting at or within 10% of their price peaks.
Taking away distressed sales, home sales nationally grew 10.7% in February from a year ago and 0.9% month-over-month.
“As the spring home-buying season kicks off, house price appreciation continues to be strong,” said Mark Fleming, chief economist for CoreLogic. “Although prices should remain strong in the near term due to a short supply of homes on the market, price increases should moderate over the next year as home equity releases pent-up supply.”
Last month CoreLogic introduced a new forecast metric that provides and advanced indication of trends in home prices. Home prices, including distressed sales, are estimated to increase 0.5% month-over-month from February to March.
In addition, home prices, including distressed sales, are expected to increase 10.5% year-over-year from March 2013 to March 2014.
“February marks two straight years of year-over-year gains in national prices across the United States,” said Anand Nallathambi, president and CEO of CoreLogic. “The consistent upward movement in home prices should ultimately prove to be an important stimulant for higher levels of sustained market activity and growth in the housing economy.”