RSS Feed by Calculated Risk on 5/06/2014 09:32:00 AM
Tuesday, May 06, 2014
CoreLogic: House Prices up 11.1% Year-over-year in March
Notes: This CoreLogic House Price Index report is for March. The recent Case-Shiller index release was for February. The CoreLogic HPI is a three month weighted average and is not seasonally adjusted (NSA).
From CoreLogic: CoreLogic Reports Home Prices Rise by 11.1 Percent Year Over Year in March
Home prices nationwide, including distressed sales, increased 11.1 percent in March 2014 compared to March 2013. This change represents 25 months of consecutive year-over-year increases in home prices nationally. On a month-over-month basis, home prices nationwide, including distressed sales, increased 1.4 percent in March 2014 compared to February 2014.
Excluding distressed sales, home prices nationally increased 9.5 percent in March 2014 compared to March 2013 and 0.9 percent month over month compared to February 2014. Distressed sales include short sales and real estate owned (REO) transactions.
“March data on new and existing home sales was weaker than expected and is a cause for concern as we enter the spring buying season,” said Dr. Mark Fleming, chief economist for CoreLogic. “Interest rate-disenfranchised potential sellers are adding to the existing shadow inventory, while buyers who can't find what they want to buy are on the sidelines creating a new kind of 'shadow demand.' This supply and demand imbalance continues to drive home prices higher, even though transaction volumes are lower than expected.”
Click on graph for larger image. This graph shows the national CoreLogic HPI data since 1976. January 2000 = 100.
The index was up 1.4% in March, and is up 11.1% over the last year. This index is not seasonally adjusted, so this was a strong month-to-month gain during the "weak" season.
The second graph is from CoreLogic. The year-over-year comparison has been positive for twenty five consecutive months suggesting house prices bottomed early in 2012 on a national basis (the bump in 2010 was related to the tax credit).I expect the year-over-year increases to continue to slow.
