Photo: Joe Wolf/Flickr
National home prices remained on the rise in April in the US, with some frustrated homebuyers fiercely competing for a dwindling supply of affordable homes in many of the country’s largest markets.
The resulting bidding wars are causing home prices to accelerate faster than rental prices in some parts of the country, according to a new report released earlier this week by CoreLogic.
The CoreLogic Home Price Index (HPI) indicates that US home prices, including distressed sales, rose nearly 7 percent year-over-year in April. And home prices were up 1.6 percent from the previous month in April.
Single-family rental homes recorded a 3 percent price gain year-over-year in April, compared to the nearly 7 percent gain in national home prices.
With the exception of Alaska, Delaware and Wyoming, every state recorded an increase in home prices in April. And seven states recorded gains higher than the national average: Colorado (8.8 percent), Michigan (8.7 percent), New York (7.2 percent), Oregon (9.1 percent), Utah (10.1 percent), Washington (12 percent) and Wisconsin (7 percent).
The highest gains were recorded in Washington State and Utah — the only two states to record double-digit price growth in April.
At the metro level, Denver, CO recorded a 9.3 percent year-over-year price gain in April — the largest of all US metro areas. It was followed by San Diego, CA (7.1 percent) and Las Vegas, NV (7 percent).
Boston, MA recorded a price gain of 6 percent year-over-year in April, the largest of any East Coast metro area.
National home prices are forecasted to rise just over 5 percent on a year-over-year basis from April 2017 to April 2018, according to CoreLogic’s HPI Forecast data. Prices are expected to go up 0.7 percent from April 2017 to May 2017.
A decrease in national mortgage rates helped spur home buying activity in April, with rates at their lowest level since November 2016.
Click here to read the entire report.