U.S. home prices increased 1.0% in April compared with March and were up 3.6% compared with April 2018, according to CoreLogic’s home price index report.
It was the first acceleration in annual home price appreciation since March 2018, the software, data and analytics firm reports.
“The pickup in sales between March and April has helped to counter the recent slowing in annual home-price growth,” says Frank Nothaft, chief economist at CoreLogic, in a statement. “Mortgage rates are 0.6 percentage points below what they were one year ago and incomes are up, which has improved affordability for buyers. However, price growth has remained the highest for lower-priced homes, constraining housing choices for first-time buyers.”
Currently, CoreLogic is forecasting that U.S. home prices will increase by an average of 4.7% by April 2020.
Although the 1.0% monthly increase is a welcome sign, CoreLogic is forecasting that U.S. home prices will decrease by 0.3% from April to May.