According to the CoreLogic® Home Price Index, which was recently released, prices nationwide which include distress sales increased by 5.9% year on year to March 2015. There have now been 37 months of consecutive year on year increases in national house prices.
When these figures are looked at on a month on month basis, prices rose by 2% in March compared to the previous month. When distressed sales are included, 27 states plus the District of Columbia are now at or within 10% of their peak prices. Another seven states which include Wyoming, Texas, Tennessee, Oklahoma, New York, Nebraska and Colorado have seen prices reach new highs since January 1976 which is when the CoreLogic Home Price Index was first introduced.
If distressed sales are excluded, real estate prices increased by 6.1% in March this year compared to March 24 and rose by 2% month on month compared to February this year. When distressed sales were excluded, only New Mexico showed a year on year depreciation and this was a barely negligible 0.4%. Distressed sales include real estate owned transactions and short sales.
The article in RisMedia points out that even though it is been a sellers’ market for the past few years, conditions are gradually returning to normal as the market becomes more balanced. Low interest rates combined with new loan programs and gradually increasing property values are all positive factors for the real estate market. However inventory levels continue to be low while demand has increased, field by new job growth and household formation. This has put upward pressure on prices in the majority of markets which is reflected in the year on year increase of approximately 6%.
The CoreLogic Home Price Index Forecast is projecting real estate price increases of 0.8% from March to April this year, and price increases of 5.1% from March this year to March 2016. When distressed sales are excluded, property prices are expected to rise by 0.7% from March to April and by 4.7% from March this year to March 2016.
Real estate experts point out that all the signs show continued price rises throughout the rest of this year. In fact the strong price appreciation from February to March may be an indication of a further price rises as the spring selling season gets underway. Real estate prices are particularly expected to increase towards record levels in large metropolitan areas such as San Francisco, Seattle, Houston, Denver and Dallas.