This change represents the biggest year-over-year increase since March 2006 and the 13th consecutive monthly increase in home prices nationally. Experts predict prices will keep going up.
The latest CoreLogic home price index jumped a whopping 10.5% nationally, but analysts say values are still far away from creating a housing bubble.
This change represents the biggest year-over-year increase since March 2006 and the 13th consecutive monthly increase in home prices nationally, CoreLogic said in a press release.
“For the first time since March 2006, both the overall index and the index that excludes distressed sales are above 10 percent year over year,” said Dr. Mark Fleming, chief economist for CoreLogic. “The pace of appreciation has been accelerating throughout 2012 and so far in 2013 leading into the home buying season.”
However, it’s far from creating a housing bubble, housing analysts say.
“More generally, concerns that a bubble is forming in house prices strike us as premature,” said Paul Diggle, property analyst for Capital Economics. “Of course, price gains which are well above twice the pace of income or rental growth are not sustainable in the long-run.”
“But note that if house prices and incomes continued rising at their current rate, the house price-to-income ratio wouldn’t return to its long-run average until 2017,” Diggle added. “That’s difficult to square with talk of prices becoming detached from their fundamental drivers.”
Diggle expects prices to continue to rise.
Source: Housewire May 7, 2013
Ron Henderson GRI, RECS, CIAS
Multi Real Estate Services, Inc
Gov’t Affairs Chair – California Association of Mortgage Professionals