WASHINGTON (5/7/14)--Single-family home prices ticked up 1.4% in March and sit 11.1% higher than prices seen in March of last year, according to the U.S. CoreLogic Home Price Index, released Tuesday (Economy.com May 6).
Excluding sales of distressed homes, however, the index climbed just 0.9% and is up 9.5% year-over-year.
The index falls 11.6% below its peak in early 2006.
"With the end of the snowy winter across the Northeast and Midwest, demand seems to have returned to its previous level, leading a resurgence in upward price pressure," said Andres Carbacho-Burgos, Moody's analyst on Economy.com.
California, Nevada, Georgia, Hawaii and Oregon experienced the largest increases in home prices year-over-year, according to Moody's, while Kentucky, Wisconsin, Oklahoma and New Mexico saw the weakest gains.
Arkansas was the only state where prices decreased.
"Home prices continue to rise across the nation, but affordability, tight credit and supply concerns are becoming an increasing drag on purchase market activity," said Anand Nallathambi, CoreLogic president/CEO, in MarketWatch. "In many markets, especially major metro areas like Los Angeles, Atlanta and New York, home prices are being driven up at double-digit rates fueled by a lack of inventory and record levels of cash purchases."
The Mortgage Bankers Association's mortgage application survey will be released today, which could signal how the market is responding to the higher home prices.
CoreLogic projects a 0.8% increase for the home price index in April, according to Marketwatch.