The housing market recovery soldiers on as home prices clear another benchmark not seen in seven years.
Home prices, including distressed sales, increased 12.1% in April 2013 compared to April 2012, according to CoreLogic’s Home Price Index (HPI).
The rise in CoreLogic’s HPI was the biggest year-over-year gain since February 2006, and the 14th consecutive increase in home prices.
Compared to the previous month, April prices rose 3.2%. Since March 2005, month-over-month gains have been at or above 2% just five times, all of which CoreLogic notes have occurred in the last year.
Despite the double digit gains, prices were still well below their peak levels for the month.
“House price growth continues to surprise to the upside with an impressive 12.1% gain year over year in April,” said Mark Fleming, chief economist of CoreLogic.
Price gains in 33 large metro areas also adds to increasing evidence that the real estate market recovery is underway and can be felt in various parts of the country.
In April, much of the highest year-over-year price gains occurred in many Western states, such as Nevada (24.6%), California (19.4%), Arizona (17.3%), Hawaii (17%) and Oregon (15.5%).
“Increasing demand for new and existing homes, coupled with low inventory has created a virtuous cycle for price gains, most clearly seen in the Western states with year-over-year gains of 20% or more,” said Fleming.
While two of these states—Nevada and Arizona—are among the top five furthest from reaching their peak home price levels, optimism holds strong for future growth.
CoreLogic’s HPI projects home prices will rise 12.5% in May on a year-over-year basis, with a projected increase of 2.7% for the month compared to April.
“For the second consecutive month, all 50 states registered year-over-year home price gains, excluding sales of distressed homes,” said Anand Nallathambi, president and CEO of CoreLogic. “We expect this trend to continue, bolstered by tight supplies and pent-up buyer demand.”
Written by Jason Oliva
