WASHINGTON (6/3/15)--Single-family home prices skyrocketed in April, jumping by 6.8% on a year-over-year basis and 2.7% for the month, according to CoreLogic. The 2.7% increase marks the fastest acceleration in monthly growth since February 1978 (Economy.com June 2).
While the CoreLogic home price index remained 9% below its peak, which was seen in April 2006, it vaulted 34% higher than the trough from early 2011.
“The U.S. housing market is having a better spring after the winter doldrums,” said Kwame Donaldson, Moody’s analyst (Economy.com). “Housing starts recovered in March and April, regaining all of the sharp decline in February and then some.”
Seven states notched record highs for home prices in April, including Alaska, Colorado, Nebraska, New York, Oklahoma, Tennessee and Wyoming. The three states with home prices furthest from their peak values were Nevada (-34.9%), Florida (-29%) and Rhode Island (-28%).
Donaldson added, however, that residential construction continues to underwhelm, only climbing slightly from last year’s pace.
Further, single-family home sales have increased on a year-over-year basis, but remain flat when compared with 2013.
“So although the housing market looks reasonably healthy, it is not going through the sort of takeoff consistent with a strong recovery,” Donaldson said.