Home prices nationwide have seen their largest year-on-year increase in more than seven years, according to a new report
Home prices nationwide, including distressed sales, increased 12.2% on a year-over-year basis in May 2013 compared to May 2012, according to CoreLogic’s May Home Price Index Report.
This change represents the biggest year-over-year increase since February 2006 and the 15th consecutive monthly increase in home prices nationally.
“It’s been more than seven years since the housing market last experienced the increases that we saw in May, with indications that the summer months will continue to see significant gains,” said Dr. Mark Fleming, chief economist for CoreLogic. “As we approach the half-way point of 2013, home prices continue to respond positively to the reductions in home inventory thus far.”
Excluding distressed sales, home prices increased on a year-over-year basis by 11.6% in May 2013 compared to May 2012. On a month-over-month basis, excluding distressed sales, home prices increased 2.3% in May 2013 compared to April 2013.
Including distressed sales, the five states with the highest home price appreciation were: Nevada, California, Arizona, Hawaii and Oregon.
The CoreLogic Pending HPI indicates that June 2013 home prices, including distressed sales, are expected to rise by 13.2% on a year-over-year basis from June 2012.
“Home price appreciation, particularly in much of the western half of the U.S., is increasing at a torrid pace,” said Anand Nallathambi, president and CEO of CoreLogic. “Across the country, pent up demand and continued low interest rates are fueling strong demand for a limited inventory of properties. We expect that trend to continue to drive up prices throughout the balance of the summer months.”