Phoenix Leads Home U.S. Prices Higher

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MORTGAGE EXPERT
5 · 22 · 13

Home prices are continuing to climb, and multiple sources indicate that some of the biggest gains are being made in Phoenix. The national outlook is for ongoing increases.

Between the fourth-quarter 2012 and the fourth-quarter 2017, U.S. home prices are expected increase 3.9 percent each year, according to CoreLogic.

The real estate information services provider said the projection was based on an analysis of more than 380 markets in the CoreLogic Case-Shiller Indexes and data from the Federal Housing Finance Agency.

This year’s appreciation is forecasted at 2.5 percent.

Estimated appreciation in 2012 based on the CoreLogic Case-Shiller Indexes was 7.3 percent — a seven-year high.

Last year’s appreciation rates were highest in hardest-hit markets like Phoenix, where investors helped push prices up 24 percent; Miami, which had a 14 percent increase; and Las Vegas, where appreciation was 13 percent.

The CoreLogic Home Price Index increased 2.0 percent between February and March and was up 10.5 percent from a year prior, “the biggest year-over-year increase since March 2006 and the 13th consecutive monthly increase in home prices nationally.”

A $192,800 national median existing-home price for all housing types was reported for April by the National Association of Realtors. That was up from $184,300 in March, an 11.0 percent increase over a year earlier and the 14th consecutive year-over-year increase.

Clear Capital reported that home prices have risen 7.2 percent in the 12 months ended April 30. A year earlier, prices had fallen 1.4 percent.

Phoenix fared best in Clear Capital’s report, with home prices up 25.8 percent. Las Vegas followed with a 24.3 percent increase. Birmingham, Ala.; Detroit; and Cleveland were the worst performing markets.

House prices were up 0.4 percent in March from the previous month, according to the FNC National Composite Residential Price Index. Compared to the same month in 2012, prices improved 5.5 percent.

Thanks to falling foreclosures, the FNC report indicated that the Phoenix metropolitan statistical area jumped 2.0 percent even after rising at a rate of 2.1 percent per month for the prior 13 months.

Among MSAs to experience the biggest declines from February in the FNC  report were St. Louis, which saw a 1.6 percent drop; Columbus, Ohio, where values were off 1.0 percent; and Miami, which had an 0.9 percent decline.

The best-performing core-based statistical area in Pro Teck Valuation Services’ May Home Value Forecast was Nashville-Davidson-Murfreesboro-Franklin, Tenn. The Oakland-Fremont-Hayward, Calif., CBSA was next, then Reno-Sparks, Nev.

At the bottom of Pro Teck’s list was El Paso, Texas.

A May 6 announcement from Veros Real Estate Solutions indicated that its proprietary home price index, VeroHPI, is being made available for commercial use. The Santa Ana, Calif.-based company says the index “is constructed using a methodology that is widely accepted as one of the most accurate ways to determine residential real estate price changes.”

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Mortgage Daily Staff

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