CoreLogic will release its Home Price Insights Report on Tuesday, June 4, after April’s Case-Shiller home price index [1]concluded that home prices rose 3.7% year-over-year in March.
March’s increase is down from February’s 3.9% growth. The Index’s 20-City Composite posted a 2.7% year-over-year gain, down from 3.0% in the previous month.
Las Vegas, Phoenix, and Tampa reported the highest year-over-year gains among the 20 cities. Las Vegas had the highest year-over-year price increase at 8.2%, and was followed by Phoenix’s 6.1% increase. Four of the 20 cities reported greater price increases in the year ending March 2019 versus the year ending February 2019.
“Home price gains continue to slow,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. “The patterns seen in the last year or more continue: year over year price gains in most cities are consistently shrinking. Double-digit annual gains have vanished.”
CoreLogic also announced that 31.1% of home sold in March were at or above the list price. [2] The amount of home selling at or above the list price peaked in Q2 2018 at more than 40%, which is almost triple what it was in January 2008.
“In March, two main components of the RHPI swung in favor of increased affordability [3]—continued strong household income growth and declining mortgage rates,” said First American Chief Economist Mark Fleming. “Nationally, affordability improved on a year-over-year basis for the first time since 2016.”
Home buying power has reached 2017 levels after an 11-month slowdown. Fleming states that the declining mortgage rates and rising income have led to boosted home buying power, overcoming the drag on affordability from rising nominal house prices.
Here's what else is happening in The Week Ahead:
- Black Knight Mortgage Monitor—June 3
- Ellie Mae Millennial Tracker—June 5
- Banking, Housing, and Urban Affairs Nomination Hearing—June 5
- Bureau of Labor Statistics Labor Data—June 7