U.S. home prices, including distressed sales, increased 1.4% in March compared to February and were up 11.1% compared to March 2013, according to CoreLogic's Home Price Index (HPI) report.
It was the 25th consecutive month, on a year-over-year basis, that home prices increased nationally.
Excluding distressed sales, home prices increased 0.9% compared to February and were up 9.5% compared to March 2013.
Only one state, Arkansas, saw home prices depreciate, on average, in March.
Colorado, the District of Columbia, North Dakota, South Dakota, Texas and Wyoming all surpassed their previous home price peaks as of March, and 23 other states are at or within 10% of their peak home price appreciation, according to the report.
CoreLogic forecasts that home prices, including distressed sales, will increase 0.8% from March to April. This would represent a year-over-year increase of 6.7%.
‘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,’ says 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.’
‘Home prices continue to rise across the nation, but affordability, tight credit and supply concerns are becoming an increasing drag on purchase market activity,’ adds Anand Nallathambi, president and CEO of CoreLogic. ‘In many markets – especially major metro areas like Los Angeles, Atlanta and New York – home prices are being driven up at double-digit rates, fueled by a lack of inventory and record levels of cash purchases.’
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