U.S. home prices increased 1.7% in June compared to May and increased 6.5% compared to June 2014, according to CoreLogic's home price index (HPI) report.
June marked the 40th consecutive month that U.S. home prices increased on a year-over-year basis.
Including distressed sales, 35 states and the District of Columbia were at or within 10% of their peak prices in June. Fifteen states and the District of Columbia reached new price peaks.
Excluding distressed sales, home prices increased 1.4% in June compared to May and were up 6.4% compared to June 2014.
Excluding distressed sales, Massachusetts and Louisiana were the only states that saw year-over-year depreciation in June. Those two states saw home prices decrease 1.5% and 0.1%, respectively, in the past year.
Currently, CoreLogic is forecasting that home prices, including distressed sales, will increase about 0.6% in July and will rise by about 4.5% by June 2016.
Excluding distressed sales, home prices are projected to increase by 0.5% in July and by about 4.2% by June 2016.
‘The tightness of the for-sale inventory varies across cities,’ explains Frank Nothaft, chief economist for CoreLogic, in a statement. ‘Throughout the U.S., the months' supply was 4.8 months in the CoreLogic home-listing data for June, but varied greatly across cities. In San Jose, Calif., and Denver, there was only 1.6 months' supply of homes on the market, whereas Philadelphia had a 7 months' supply and Providence. R.I., had a 6.6 months' supply.’
Nothaft says cities with limited inventory and strong home buyer activity, such as San Jose and Denver, saw stronger appreciation in June.
‘The current cycle of home price appreciation is closing in on its fourth year with no apparent end in sight,’ adds Anand Nallathambi, president and CEO of CoreLogic. ‘Pent-up buying demand and affordability, together with higher consumer confidence buoyed by a more robust labor market, are a potent mix fueling a 6.5 percent jump in home prices through June with more increases likely to come.’
Including distressed sales, states that saw the most home price appreciation, year over year, in June included Colorado (9.8%), Washington (8.9%), New York (8.3%), South Carolina (8%) and Nevada (8%).
Excluding distressed sales, states that saw the highest home price appreciation, year over year, were Colorado (9.3%), New York (8.5%), Washington (8.3%), Oregon (8.2%) and Nevada (7.9%).
Including distressed sales, only four states experienced home price depreciation, including Massachusetts (-5%), Connecticut (-0.6%), Louisiana (-0.4%) and Mississippi (-0.3%).
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