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Takeaways:
- Home prices rose by 1.7 percent month over month in June, according to CoreLogic.
- Prices rose year over year by 6.5 percent.
- Fifteen states and the District of Columbia reached new price peaks in June.
U.S. home prices, including distressed sales, increased by 6.5 percent in June from a year ago.
On a month-over-month basis, home prices rose by 1.7 percent, according to CoreLogic’s June 2015 Home Price Index (HPI).
A “potent mix” of pent-up buying demand, affordability, higher consumer confidence, and a more robust labor market is fueling the 6.5 percent rise, said Anand Nallathambi, president and CEO of CoreLogic.
The firm’s HPI projects that home prices will increase by 0.6 percent from June to July and by 4.5 percent on a year-over-year basis.
Fifteen states and the District of Columbia reached new price peaks in June:
- Alaska
- Arkansas
- Colorado
- Hawaii
- Iowa
- Kentucky
- Nebraska
- New York
- North Carolina
- North Dakota
- Oklahoma
- South Dakota
- Tennessee
- Texas
- Wyoming
Including distressed sales, the five states with the highest year-to-year home price appreciation were:
- Colorado (9.8 percent)
- Washington (8.9 percent)
- New York (8.3 percent)
- South Carolina (8 percent)
- Nevada (8 percent)
Only four states experienced home price depreciation in June, led by Massachusetts at -5 percent. Connecticut (-0.6 percent), Louisiana (-0.4 percent) and Mississippi (-0.3 percent) represent the other three states that saw depreciation.
Of the largest U.S. metros, Dallas saw the largest 12-month change in prices — an 8.6 percent increase.
Houston experienced 7.4 percent appreciation, while New York and Los Angeles both eclipsed 6 percent. Phoenix, Minneapolis and Southern California’s Inland Empire all saw rises between 4.5 and 5.1 percent.
Frank Nothaft, chief economist for CoreLogic, notes that stronger appreciation was registered in cities with limited inventory and strong homebuyer activity. He pointed to San Jose and Denver as prime examples. Both markets’ supply of homes in June was 1.6 months.
Of the top 100 markets measured by CoreLogic, 93 showed year-over-year increases.
The seven locales that showed year-over-year declines were:
- Baltimore (-8 percent)
- Worcester, Massachusetts (-7 percent)
- New Orleans (-6.1 percent)
- Boston (-4.4 percent)
- New Haven, Connecticut (-1.8 percent)
- Camden, New Jersey (-0.5 percent)
- Hartford, Connecticut (-0.1 percent)