April Price Increase was Smallest in 14 Months

Home prices posted a 26th consecutive month of year-over-year increases in April on the CoreLogic Home Price Index (HPI)  Prices nationwide, including those of distressed homes sold during the month, increased 10.5 percent compared to the HPI in April 2013.  However, this is the smallest year-over-year increase since February 2013.  There was a 2.1 percent increase compared to the HPI in March.

The five states with the highest year-over-year home price appreciation on this index were California (+15.6 percent), Nevada (+14.8 percent), Hawaii (+14.1 percent), Oregon (+11.8 percent) and Michigan (+11.3 percent).

The HPI excluding short sales and sales of lender owned real estate (REO) showed home prices increasing 8.3 percent from the previous April and 1.1 percent month-over-month.   States with the highest home price appreciation were: Hawaii (+13.0 percent), California (+11.4 percent), Nevada (+11.1 percent), New York (+10.3 percent) and Florida (+10.2 percent).

The improvement in home prices continues to be broad based with no states posting depreciation on either the distressed or non-distressed index.  Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to April 2014) was -14.3 percent. Excluding distressed transactions, the peak-to-current change for the same period was -10.8 percent.

Eight states established new home price peaks (Colorado, Louisiana, Nebraska, Oklahoma, North Dakota, South Dakota, Texas, and Wyoming) and another 15 states and the District of Columbia are at or within 10 percent of previously established peak prices.

Only five of the top 100 Core Based Statistical Areas (CBSAs) measured by population did not show annual price increases in April.  They were the Hartford area, Milwaukee, Little Rock, Worcester, Massachusetts; and New Haven.

Even with continued price increases and with new peaks being established, CoreLogic notes that the trajectory is changing.   Sam Khater, the company's deputy chief economist said, "The weakness in home sales that began a few months ago is clearly signaling a slowdown in price appreciation.  The 10.5 percent increase in April, compared to a year earlier, was the slowest rate of appreciation in 14 months."

CoreLogic's HPI Forecast predicts that home prices, including distressed sales, will increase 1.0 percent in May compared to April and by 6.3 percent on an annual basis.  Excluding distressed sales the company's HPI should rise 0.8 percent from April to May and 6.3 percent compared to May 2013. 

 "Home prices are continuing to rise as we head into the summer months," said Anand Nallathambi, president and CEO of CoreLogic. "The purchase market continues to suffer from a dearth of inventory which we expect will continue to drive prices up over the year."