Home prices rose 10.5% in April, says CoreLogic, but the days of double-digit gains are nearing an end. Seven states saw home prices surpass boom-era peaks.
Home prices in April rose 10.5% over last year, the lowest rate of appreciation in 14 months, according to CoreLogic. The research firm predicts home prices will continue to increase at a slower pace: 6.3% over the next year.
April was the 26th month of year-over-year increases in national home prices.
CoreLogic CEO Anand Nallathambi attributed the persistent price appreciation to an insufficient supply of homes on the market. “The purchase market continues to suffer from a dearth of inventory,” said Nallathambi.
Despite the still-double-digit growth, April’s price gain represented the lowest year-over-year increase in home values since February 2013.
“The weakness in home sales that began a few months ago is clearly signaling a slowdown in price appreciation,” said Sam Khater, deputy chief economist for CoreLogic.
While home appreciation may be slowing, seven states have seen housing values reach new heights. Prices in Colorado, Louisiana, Nebraska, North Dakota, South Dakota, Oklahoma, Texas, and Wyoming have surpassed their housing boom highs.
Homeowners elsewhere in the U.S. haven’t been so lucky. Prices in Nevada increased 14.8% in April, the second-largest year-over-year increase of any state, but remain off 38% from their March 2006 peak. That’s the biggest drop of any state in that time period.
Of the top 10 most-populated regions, metro areas in California, Texas, and Georgia saw the largest year-over-year home appreciation. Prices in the area comprising Riverside, Calif. area led the pack, increasing almost 20% from April 2013 to April 2014.
The Denver, Dallas and Houston metropolitan areas experienced their highest prices since their boom-era peak.
Anthony Rael, market trends committee chairman for the Denver Metro Association of Realtors, says Denver has become a seller’s paradise.
“If it’s priced right in a good neighborhood and in good shape, sellers are getting top dollar,” said Rael. “In many cases, within the first week [on the market].”