CoreLogic: Home Prices Post Strong Yearly Gains

CoreLogic, Irvine, Calif., said home prices posted strong gains in March, appreciating by 40 percent from five years ago.

The company’s Home Price Index said home prices rose both year over year and month over month in March. Home prices nationwide, including distressed sales, increased year over year by 6.7 percent from a year ago and increased month over month by 2.1 percent from February.

“Home prices reached the bottom five years ago, and since then have appreciated almost 40 percent,” said Anand Nallathambi, president and CEO of CoreLogic. “The highest appreciation was in the West, where prices continue to increase at double-digit rates.”

States with the highest year over year home price increases in March were Washington (13.0 percent), Colorado and Oregon (10.0 percent), Florida (9.3 percent) and New York (8.2 percent). States with the slowest year over year growth were Maryland (0.7 percent), Connecticut and Wyoming (1.0 percent), New Jersey (1.4 percent) and Vermont (1.7 percent).

Looking ahead, the CoreLogic HPI Forecast projects home prices will increase by 5.3 percent on a year-over-year basis through March 2017; on a month-over-month basis home prices are expected to increase 0.7 percent through April.

“Housing helped keep U.S. economic growth afloat in the first quarter of 2016 as residential investment recorded its strongest gain since the end of 2012,” said CoreLogic Chief Economist Frank Nothaft. “Low interest rates and increased home building suggest that housing will continue to be a growth driver.”