Econintersect: CoreLogic’s Home Price Index (HPI) shows that home prices in the USA in June 2014 are up 7.5% year-over-year (reported up 1.0% month-over-month). The year-over-year growth rate was down from the 8.8% reported last month.
This is the 28th consecutive month of year-over-year increase. Mark Fleming, chief economist for CoreLogic stated:
Home price appreciation continued moderating in June with its slight month-over-month increase. This reversion to normality that we are finally experiencing is expected to continue across the country and should further alleviate concern over diminishing affordability and the risk of another asset bubble.
Anand Nallathambi, president and CEO of CoreLogic stated:
Home prices are continuing to rise fueled by ongoing tight supply, low rates and aggressive investor buying on the East and West Coasts. The expected surge in the number of homes for sale has not materialized to date as many homeowners are staying put and waiting for better economic times and higher prices in the future.
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)