Home prices rose 10.5% in March, compared with the same month a year ago, the largest monthly increase since March 2006, according to research firm CoreLogic Inc. (NYSE: CLGX). The firm had previously forecast a rise of 10.2%, equal to the index jumps in January and February. The data include sales of distressed properties.
Month-over-month, March prices rose 1.9%, including distressed home sales. Excluding distressed sales, March prices rose 2.4% compared with February, and the year-over-year price also rose by 10.7%.
CoreLogic expects April housing prices to rise another 9.6% year-over-year and to rise by 1.3% month-over-month. Excluding distressed sales, CoreLogic’s year-over-year increase for April is forecast at 12% and the month-over-month estimate is forecast to rise by 2.7%.
The company’s CEO noted:
Home prices continue to rise at a double-digit rate in March led by strong gains in the western region of the U.S. Looking ahead, the CoreLogic pending index for April indicates that upward price appreciation will continue. Much of the price increases we are seeing are the result of rising demand among investors and homebuyers for a still-limited supply of homes for sale.
Including distressed sales, home prices rose the most in Nevada (prices up 22.2%), California (17.2%), Arizona (16.8%), Idaho (114.5%) and Oregon (14.3%). Excluding distressed sales, the biggest gains were posted in Nevada (20.8%), California (16.8%), Idaho (16.3%), Arizona (15.1%) and Hawaii (14.3%).
Among the 100 largest U.S. cities, 88 showed a year-over-year increase in home prices. The largest gains (including distressed properties) came in the Phoenix area (up 18.8%), Los Angeles (16.7%), Riverside, Calif. (14.8%), Atlanta (14.2%) and Houston (7.9%).
The CoreLogic March report is available here.
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