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Home Prices Growing Faster

CoreLogic’s Home Price Index (HPI) reports that home prices rose 4.1% annually in February. This represents an increase from February 2019’s gain of 4%. 

The HPI has increased on a year-over-year basis every month since February 2012 and has gained 63.6% since March 2011. 

The overall HPI was 10.1% higher than its pre-crisis peak in April 2006. 

Homes in the lowest-price tier rose 6% annually in February, compared to 5.2% for the middle-price tier. The middle-to-moderate price tier saw home prices rise 4.5% and 3.6% for the high-price tier. 

CoreLogic also reports that homes in the lowest-price tier since 2011 have gained 98.6%. Homes in the highest-price tier have gained 49.5% since 2011. 

Idaho, once again, led the nation in annual appreciation at 11.4% in February. New Mexico was a closed second at just over 9%. 

Connecticut was the only state to report home price decrease at 0.6%. Prices in 41 states, including the District of Columbia, have risen above their pre-crisis peaks. 

Home prices in Connecticut during the month were the farthest below their all-time HPI high, but 18% below their July 2006 peak. 

Utah reported the biggest dip in price growth, rising by 5.6% in February, which is a drop from the 10.6% gain in February 2019. 

This report comes after realtor.com revealed the nation's inventory fell 15.7% year-over-year in March, which is faster than the 15.3% annual drop in February. 

This equates to a loss of 191,000 listings compared to March 2019. Realtor.com added the year-over-year decline in inventory could be “softening,” which the report says could be an early indicator of slowing buyer activity due to COVID-19. 

The volume of newly-listed properties in March fell by 6.4% since last year and for newly-listed properties for the week ending on March 28 fell by 34% annually—the biggest decline this year. 

Housing inventory in the 50 largest U.S. metros declined by 17.1% year-over-year in March. The metro of Phoenix-Mesa-Scottsdale, Arizona, saw the largest decline in inventory at 42.2%. Only Minneapolis-St. Paul-Bloomington, MN-WI (3.6%) saw inventory increase over the year.

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.
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