WASHINGTON (5/6/15)--Home prices advanced at their fastest pace in nearly two years in March with a 2% month-over-month jump, according to the CoreLogic Home Price Index.
On a year-over-year basis, home prices climbed 5.9% in March, though they still sit 11% behind their peak levels from 2006 (Economy.com May 5).
“The index has started 2015 with three months of solid growth, which reverses four months of declines at the end of 2014,” said Kwame Donaldson, Moody’s analyst (Economy.com). “House prices are rising at a sustainable pace, but several more quarters of solid growth are necessary before these prices regain their peak.”
Excluding distress sales, the index jumped 6.1% on an annual basis.
Including distress sales, however, seven states experienced new highs for home prices, including Colorado, Nebraska, New York, Oklahoma, Tennessee, Texas and Wyoming.
The states to post the largest monthly declines in house prices, on the other hand, were Massachusetts (-2.1%), New Jersey (-0.9%) and New Mexico (-0.8%).
At the metro level, Dallas, Houston and New York recorded the highest year-over-year gains in home prices.
“All the major pieces are in place for more robust growth,” Donaldson said. “The labor market continues to move in the right direction, and stronger wage growth will be apparent by the end of the year, lending support to house-price growth.”