CoreLogic’s latest Home Price Index (HPI) revealed national home prices rose 3.6% year-over-year in May 2019.
The report adds that CoreLogic is forecasting prices to increase 5.6% from May 2019 to May 2020. The May 2019 gains was lower than the 6.4% increase of May 2018, but a slight increase from March 2019’s 3.3%.
Homes in the lower-price tier saw the largest annual increases at 5.4%. The middle low-to-middle tier rose 4.5%, middle-to-moderate price tier increased 4%, and the high-price tier jumped 3%.
CoreLogic stated the overall HPI has increased annually every month since March 2012, and grown 61.1% since bottoming out in March 2011. The overall HPI in May 2019 was 8.3% higher than its pre-crisis peak in April 2006. Home prices increased 2.6% year-over-year in May 2019, and were 11.6% below their peak.
For the eighth-consecutive month Idaho led the nation in annual appreciation, coming in at 10.7% in May 2019. North Dakota had its 11th month of annual HPI decreases, and saw home prices depreciate at 1.7%.
Home prices in 39 states, including the District of Columbia, have risen above their pre-crisis peaks. California, Idaho, and Michigan have surpassed their pre-crisis peaks as of May 2019.
Connecticut’s home prices in May 2019 were 17.6% below the July 2006 peak, which is the largest gap in the nation. Home price cooling was most evident, according to CoreLogic, in Washington, California, and Nevada.
Rising home prices are an issue for prospective buyers, as a study by realtor.com found that half of today’s home buyers are looking for a property under $288,000, which is more than 9% below the median price for homes currently on the market.
The results of the study found that home’s priced below $288,000 is 9.1%, or $27,000 under the national average.
“The price differences between what buyers are searching for, closing on, and what’s available on the market demonstrates just how big the gap is for entry-level home buyers,” said Danielle Hale, Chief Economist for realtor.com.
Realtor.com states that closing that gap won’t come easy, and estimates that approximately that 94,000 homes priced between $100,000 and $340,000 would need to be put up for sale achieve that balance.
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