« Southern California Housing Sales Highest In 11 Months
Home sales in metro Detroit flat in June, Market reflects end of buyer tax credits »

Can Growth In US Housing Values Continue?

National home prices in May increased 2.9% from a year ago, marking the fourth straight month of yearly growth, according to CoreLogic, an analytics and real estate services provider.

Home prices on the CoreLogic home price index (HPI) have increased every month since the 0.3% yearly increase in February. The May increases come after a 2.6% yearly gain in April. Prices in May grew 0.9% from the month before, a smaller increase from the 1.3% gain from March to April. According to CoreLogic, sales in the bottom-tier of the market, those homes priced at 75% below the median, are driving the recent increases in overall prices.

But anyone expecting continued increases the rest of the year may be too optimistic.

“Home price appreciation stabilized as homebuyer tax credit driven sales peaked in late spring,” said Mark Fleming, chief economist for CoreLogic. “But given that the labor market and income growth remain tepid, we expect prices to moderate and possibly decline the rest of the year.”

And despite the recent trend in growth, prices still remain 28.5% below the peak in April 2006, according to CoreLogic.

The states with the highest price increases in May were California (7.9%), Virginia (6.8%), Massachusetts (5.7%), Rhode Island (5.5%), and Vermont (5.1%). The statistics include distressed sales.

The states with the most losses from last year were Idaho (-6.6%), Alabama (-5.3%), New Mexico (-4.2%), Maryland (-3.1%), and Wyoming (-3.1%).

Related Posts

  1. Home prices could jump 5% in the next 12 months as high mortgage rates freeze the housing market, Zillow economists say
  2. We’re entering a brutal new era for the housing market
  3. The US housing market is set to cool this fall, setting up a rare opportunity for buyers as sellers slash prices, Zillow says
  4. Housing market predictions: The forecast for the next 5 years
  5. Homebuilders are liking today’s housing market
  6. Homebuyers are ‘losing patience,’ no longer on the sidelines: survey
  7. Homeowners Are Increasingly Reluctant to Sell, But Not For The Reason You’d Expect
  8. Homebuyers can’t get a break as mortgage rates march back toward 7%

Tags: ,

This entry was posted on Friday, July 16th, 2010 at 4:19 pm and is filed under Opinion. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply