Econintersect: CoreLogic’s Home Price Index (HPI) shows that home prices in the USA in February 2014 are up 12.2% year-over-year (reported up 0.8% month-over-month). The year-over-year growth rate was up from the 12.0% reported last month.
This is the 24th consecutive month of year-over-year increase. Dr. Mark Fleming, chief economist for CoreLogic stated:
As the spring home-buying season kicks off, house price appreciation continues to be strong. Although prices should remain strong in the near term due to a short supply of homes on the market, price increases should moderate over the next year as home equity releases pent-up supply.
Anand Nallathambi, president and CEO of CoreLogic stated:
February marks two straight years of year-over-year gains in national prices across the United States. The consistent upward movement in home prices should ultimately prove to be an important stimulant for higher levels of sustained market activity and growth in the housing economy.
Comparison of Home Price Indices – Case-Shiller 3 Month Average (blue line, left axis), CoreLogic (green line, left axis) and National Association of Realtors (red line, right axis)
The way to understand the dynamics of home prices is to watch the direction of the rate of change – and not necessarily whether the prices are getting better or worse. Home prices are improving – but the rate growth of year-over-year price improvement is now flat (not accelerating or decelerating).
Year-over-Year Price Change Home Price Indices – Case-Shiller 3 Month Average (blue bar), CoreLogic (yellow bar) and National Association of Realtors (red bar)