The CoreLogic Home Price Index surprised analysts with a stronger-than-expected, 12.1 percent hike in April, with even better numbers expected for May.
The CoreLogic Home Price Index exceeded expectations again in April, with home prices leaping 12.1 percent year-over-year and 3.2 percent from March to April.
That represents the 14th straight month of yearly increases for the Home Price Index, and the largest such increase since February 2006; furthermore, since March 2005, month-to-month gains have exceeded 2 percent just five times, and all five of those occurrences have taken place within the last year.
Mark Fleming, the chief economist of CoreLogic, said that even he was surprised by the strength of April’s numbers.
“House price growth continues to surprise to the upside, with an impressive 12.1 percent gain year over year in April,” Fleming said.
Home Price Index More Mixed at the Local Level
Though all 50 states showed yearly price growth for non-distressed sales, the situation was a bit more varied when distressed sales were factored into the equation.
And here in Miami, the home price situation continues to be a fascinating study in contrasts. Though CoreLogic’s report did not specifically address Miami, it did find that home prices in Florida rose 10.5 percent yearly in April and 4 percent monthly, though even with those gains, prices in the Sunshine State remain 40.5 percent below their September 2006 peak; only Nevada has experienced a greater fall from its boom-era peak.
But of course, as we know from the latest data from the Miami Association of Realtors, that’s only half the story. With inventory as low as it is in Miami-Dade, and homebuyer demand soaring, the median sales price for single-family homes rose 23.7 percent year-over-year in April, while condo median price (which has risen for 22 straight months) rose 17.1 percent yearly and 4.8 percent from March.
And we can probably expect similarly joyous numbers for May. Though the housing recovery is expected to increase housing inventory and slow home-price growth, the CoreLogic Pending HPI, which tracks MLS data to anticipate the next Home Price Index’s numbers, anticipates a 12.5 percent yearly increase for home prices in May; and as our infographic below demonstrates, that would be perfectly consistent with the last 13 months of home price growth.