The figures also show a 1.6% rise month-over-month as mortgage rates slipped back to their lowest level since November 2016, boosting sentiment of home buyers.
“In some metro areas, there has been a bidding frenzy as multiple contracts are placed on a single home. This has led home-price growth to outpace rent gains,” CoreLogic chief economist Dr Frank Nothaft commented.
The outlook for the housing market remains positive but at a slower pace than that seen in April. CoreLogic’s HPI Forecast for the year to April 2018 shows a 5.1% rise in prices and the gain from April to May of this year is forecast to be 0.7%.
“Interest rates on fixed-rate mortgages are down by one-fourth of a percentage point since mid-March, just in time to support the spring home-buying season,” said Frank Martell, president and CEO of CoreLogic. “Some metro areas have low for-sale inventory, short time-on-market trends and homes that sell above the list price. Geographically, gains were strongest in the West with Washington and Utah posting double-digit gains.”
More market update:
Home prices across the US including distressed sales were up 6.9% year-over-year in April according to the latest CoreLogic Home Price Index.