IRVINE, CA—CoreLogic forecasts that home prices on a national basis will rise 6.3% between April 2014 and April 2015. According to a recent report, firm projects that prices will increase 1% month-over-month from April to May of this year and reports that home prices nationwide, including distressed sales, increased 10.5% in April compared to April 2013.
According to Anand Nallathambi, president and CEO of CoreLogic, “Home prices are continuing to rise as we head into the summer months. The purchase market continues to suffer from a dearth of inventory, which we expect will continue to drive prices up over the year.”
However, Sam Khater, deputy chief economist for CoreLogic, adds that the weakness in home sales that began a few months ago is clearly signaling a slowdown in price appreciation. “The 10.5% increase in April, compared to a year earlier, was the slowest rate of appreciation in 14 months.”
Still, the average price change from last April to this April represents 26 months of consecutive year-over-year increases in home prices nationally. On a month-over-month basis, home prices nationwide, including distressed sales, increased 2.1% in April compared to March of this year.
At the state level, including distressed sales, no states posted depreciation in April, according to CoreLogic. Additionally, Colorado, Louisiana, Nebraska, Oklahoma, North Dakota, South Dakota, Texas and Wyoming all surpassed their previous home-price peaks. In all, 23 states and the District of Columbia are at or within 10% of their peak home-price appreciation.
Excluding distressed sales, home prices nationally increased 8.3% in April 2014 compared to April 2013 and 1.1% month-over-month compared to March 2014. Distressed sales include short sales and REO transactions.
As GlobeSt.com reported earlier this week, the number of short sales and foreclosure sales combined on US residential properties accounts for the lowest share of sales year-to-date, according to a report from RealtyTrac. The combined total of these sales accounted for 15.6% of all sales in April, down from 16.5% of all sales in March, and down from 17.2% of all sales in April 2013.