Home prices across the United States, including distressed sales, increased 11.1% in March 2014 compared to the same time last year, the latest published data shows.
This represents 25 months of consecutive year on year increases in home prices nationally, says real estate analysts CoreLogic.
The data also shows that on a month on month basis, home prices nationwide, including distressed sales, increased 1.4% in March 2014 compared to February 2014.
Excluding distressed sales, home prices nationally increased 9.5% in March 2014 compared to March 2013 and 0.9% month on month compared to February 2014. Distressed sales include short sales and real estate owned (REO) transactions.
‘March data on new and existing home sales was weaker than expected and is a cause for concern as we enter the spring buying season,’ said Mark Fleming, chief economist for CoreLogic.
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‘Interest rate disenfranchised potential sellers are adding to the existing shadow inventory, while buyers who can’t find what they want to buy are on the side lines creating a new kind of shadow demand,’ he explained.
‘This supply and demand imbalance continues to drive home prices higher, even though transaction volumes are lower than expected,’ he added.
This index is not seasonally adjusted, so this was a strong month on month gain during the so called weak season. Fleming said that he expects that the year on year increase will continue to slow.
Including distressed sales, prices were still 16% below peak levels, and excluding distressed sales, prices were down 11.6% from the peak.
Including distressed sales, year on year home prices were up in the District of Columbia and every state except Arkansas where they fell by 0.3%. California led the country with a 17.2% price increase from March 2013, followed closely by Nevada with a 15.5% increase. Excluding distressed sales, no state showed a year on year home price decrease.
In terms of monthly changes, 42 states and the District of Columbia showed increases, with Mississippi with growth of 3.2% and Alaska at 2.3% showing the largest increases. West Virginia with a fall of 1.8% and Alabama with a fall of 1% showing the largest decreases.
Colorado, the District of Columbia, North Dakota, South Dakota, Texas and Wyoming all reached new highs in home prices, and Louisiana is approaching peak index levels as well. Conversely, despite rapid appreciation, Nevada remained at 39.9% below its peak in 2006, followed by Florida below by 36.3%.
This article was republished with permission from Property Wire.