CoreLogic released its Home Price Index (HPI) for February, which found that home prices increased by 12.2 percent from the previous year. The CoreLogic figure includes home prices of distressed sales, and represents 24 months of consecutive year-over-year increases in home prices nationally.
Home prices month-over-month also increased, posting a .8 percent gain compared to January, 2014. The monthly figure includes distressed sales.
14 states showed double-digit year-over-year growth in February. Colorado, Nebraska, North Dakota, Texas, and the District of Columbia all reached new home price highs, with 22 states at or within 10 percent of their price peaks.
“As the spring home-buying season kicks off, house price appreciation continues to be strong,” said Dr. Mark Fleming, chief economist for CoreLogic. “Although prices should remain strong in the near term due to a short supply of homes on the market, price increases should moderate over the next year as home equity releases pent-up supply.”
Without distressed sales, which consist of REO properties and short sales, the HPI revealed slightly lower gains.
Home prices excluding distressed sales increased 10.7 percent in February from the previous year, and .9 percent from the previous month. All 50 states and the District of Columbia showed year-over-year appreciation when excluding distressed sales, according to CoreLogic.
“February marks two straight years of year-over-year gains in national prices across the United States,” said Anand Nallathambi, president and CEO of CoreLogic. “The consistent upward movement in home prices should ultimately prove to be an important stimulant for higher levels of sustained market activity and growth in the housing economy.”
CoreLogic also announced a new forecast feature to its report, offering projections for upcoming months. The company projected prices to increase .5 percent in March.
Additionally, the home prices with distressed sales are estimated to increase 10.5 percent year-over-year from March, 2013 to March, 2014.
CoreLogic projects home prices excluding distressed sales will increase 9.3 percent in March year-over-year, and .4 percent month-over-month.
Including distressed sales, the five states with the highest home price appreciation were California (+19.8 percent), Nevada (+18.5 percent), Georgia (+14.2 percent), Oregon (+13.8 percent) and Michigan (+13.5 percent).
Excluding distressed sales, the five states with the highest home price appreciation were California (+15.9 percent), Nevada (+14.6 percent), Florida (+13.1 percent), Washington (+11.5 percent) and Hawaii (+11.5 percent).