Peoples Home Equity thinks the controlling factor pushing up home prices has been low inventories.
Chicago, IL (PRWEB) March 04, 2014
Peoples Home Equity echoes news from Corelogic’s home price index report released today, March 4th. The report builds a constructive image of the national housing environment with plenty of areas to grow.
The home price index report began with its classic overview intro showing that national home prices have risen 12% year-over-year in January. On a monthly basis, the index rose 0.9% in January 2014 from December 2013 while remaining -17.3% its April 2006 peak. Dr. Mark Fleming, chief economic at CoreLogic offered a positive yet cautious quote about this winters national real estate environment, “Polar vortices and a string of snow storms did not manage to weaken house price appreciate in January. The last time January month-over-month and year-over-year price appreciate was this strong was at the height of the housing bubble in 2006.” Peoples Home Equity thinks the controlling factor pushing up home prices has been low inventories. Once inventories increase home prices will not necessarily decline, but stop increasing.
Corelogic forecasted that February’s year-over-year price appreciate would be a little better than January’s at 12.5%. As usual the top percentage gainers in terms of regions of the United States were Nevada at +17.2%, California, at 16.0%, and Florida, at 12.7%. Both Nevada and Florida remained furthest from their peak values in January at -40.1% and -36.4%. States that showed the highest percentage change from December 2013 were New York, at 2.7%, Vermont, at 2.7%, and Florida, at 2%.
Regarding metropolitan areas, 97 of the 100 analyzed, experienced year-over-year price increases. The top two metro areas were Riverside-San Bernardino-Ontario, CA and Los Angeles-Long Beach-Glendale, CA, which respectively increased 22.3% and 19.7%.
Peoples Home Equity was not surprised to see Nevada and Florida perform well as both markets were greater affected by the housing bubble. Note, the lender suggested back on September, 10 2013 in a release titled “Las Vegas Housing Market Recovering” that the Nevada market was showing real estate growth opportunities. Since property values are rising across the nation, individuals should take time to analyze each area of interest carefully.
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