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
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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
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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)
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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)
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