U.S. home prices are rising at a rate not seen in nearly six
years, posting consecutive increases in March and April according
to new figures from the real estate and mortgage data firm
Home prices, including foreclosures and other distressed
property sales, rose for a second consecutive month in April,
increasing 2.2 percent over their March level. On an annual basis,
prices were up 1.1 percent over their April 2011 level, for a
second consecutive month of annual increases as well.
With distressed sales excluded, home prices in April were up 2.6
percent over March and 1.9 percent over their April 2011 level,
according to the CoreLogic April Home Price Index (HPI).
Fastest gains since 2006
"Excluding distressed sales, home prices in March and April are
improving at a rate not seen since late 2006 and appreciating at a
faster rate than during the tax-credit boomlet in 2010," said Mark
Fleming, chief economist for CoreLogic.
Fleming added that the inventory of homes for sale is down to a
6.5 month supply, the lowest in more than five years. He said the
low supply is partly due to the fact that many homeowners who would
like to sell cannot do so because there are in negative equity with
regard to their mortgages.
Based on data from pending home sales, CoreLogic is predicting a
further increase of 2.0 percent from April to May.
Limited supply expected
"We see the consistent month-over-month increases … as one sign
that the housing market is stabilizing," said Anand Nallathambi,
CoreLogic president and chief executive officer. "Home prices are
responding to a restricted supply that will likely exist for some
time to come - an optimistic sign for the future of our
The biggest monthly price increases in April's reports were
recorded by Arizona, up 8.8 percent; District of Columbia, up 6.4
percent; Florida, up 5.5 percent, Montana, up 5.4 percent; and
Utah, up 5.4 percent. The states with the biggest declines were
Delaware, down 11.9 percent; Illinois, down 6.8 percent; Alabama,
down 6.6 percent; Rhode Island, down 6.2 percent; and Georgia, down
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