US home prices seem to be bouncing back from years of falling values by rising for the third month in a row.
Home prices were up 2% in May, compared with a year ago, while figures show they rose 1.8% between April and May 2012, according to real estate data analysts CoreLogic.
The firm’s house price index reckons the trend shows prices will rise another 1.4% in June
“The recent upward trend in US home prices is an encouraging signal that we may be seeing a
bottoming of the housing down cycle,” said Anand Nallathambi, president and chief executive
officer of CoreLogic. “Tighter inventory is contributing to broad, but modest, price gains nationwide and more significant gains in the harder-hit markets, like Phoenix.”
The research also found the prices of cheaper homes is rising faster than those opf more expensive properties.
“Home price appreciation in the lower-priced segment of the market is rebounding more quickly
than in the upper end,” said Mark Fleming, chief economist for CoreLogic. “Home prices below 75% of the national median increased 5.7% from a year ago, compared to only a 1.8 % increase for prices 125% or more of the median.”
- The five states with the highest rising home prices in May were: Arizona (12%); Idaho (9.2%); South Dakota (8.7%), Montana (8.2%) and Michigan (7.9%)
- The five states with the greatest price falls in May were: Delaware (-9.0%), Rhode Island (-4.4%), Illinois (-4.2%), Alabama (-4.1%) and Georgia (-4.0%)
- The five states with the largest gap between peak and current prices are Nevada (-57.7%), Florida (-45.6%), Arizona (-45%), Michigan (-40.5%) and California (-39.7%)