Econintersect: CoreLogic’s Home Price Index (HPI) shows that home prices in the USA in April 2014 are up 10.5% year-over-year (reported up 2.1% month-over-month). The year-over-year growth rate was down from the 11.1% reported last month.
This is the 26th consecutive month of year-over-year increase. Sam Khater, deputy chief economist for CoreLogic stated:
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
Anand Nallathambi, president and CEO of CoreLogic stated:
Home prices are continuing to rise as we head into the summer months. The purchase market continues to suffer from a dearth of inventory which we expect will continue to drive prices up over the year
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 declining.
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)