The housing recovery has picked up speed, as home prices posted their highest year-over-year gain since February 2006, according to the latest housing data from CoreLogic.
CoreLogic's home price index climbed 12.1 percent in April over year-ago levels. Home prices have been on the rise for more than a year.
"The pace of the housing market recovery quickened in April as home prices rose across the U.S.," says Anand Nallathambi, CoreLogic's chief executive officer. "We expect this trend to continue, bolstered by tight supplies and pent-up buyer demand."
CoreLogic economists predict home prices will rise another 2.7 percent in May.
The following five states had the largest price gains over the past year:
- Nevada: +24.6%
- California: +19.4%
- Arizona: +17.3%
- Hawaii: +17%
- Oregon: +15.5%
Will this trend continue, yes, but almost certainly not at this pace.
Financing and re-financing remain difficult for most buyers, new construction is ramping up and sellers who had postponed selling are not listing their houses; these factors and others will pressure further price increases.
And, let's learn from experience, it prices do continue to increase at these levels, what's that called? A BUBBLE. What the nation needs to see is steady increase in housing prices, matching the the rate of inflation or a little more.
No comments:
Post a Comment