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Home Price Index Highlights: April 2016

National Home Prices Increased Nearly 6.2 Percent Year Over Year in April 2016

Molly Boesel    |    Property Valuation

HPI Blog
  • Home prices including distressed sales increased 6.2 percent year over year in April 2016 and forecast to increase by 5.3 percent over the next year.
  • Washington had the largest year-over-year price growth of any state in April 2016.
  • Appreciation slowed in some oil markets such as in two Texas metro areas: Houston-The Woodlands-Sugar Land logged a 3.9 percent year-over-year gain and Midland logged a 0.3 percent increase.

National home prices increased 6.2 percent year over year in April 2016, according to the latest CoreLogic Home Price Index (HPI®) Report. While the HPI has increased on a year-over-year basis every month since February 2012, prices are still 7.9 percent below the April 2006 peak. Home prices have risen 38.8 percent since bottoming out in March 2011. Home prices are expected to increase by 5.3 percent from April 2016 to April 2017, and are projected to return to the April 2006 peak in mid-2017. Adjusting for inflation, U.S. home prices increased 6 percent year over year in April 2016, and are 21 percent below their peak[1].

YOY HPI

YOY HPI

Figure 1 shows the year-over-year HPI growth for the 25 highest-appreciating states in April 2016 along with their highest and lowest historical price changes. Washington showed the largest HPI gain of all states in April 2016 with a 10.6 percent year-over-year increase, followed closely by Oregon (+10.3 percent) and Colorado (+9.5 percent). Only Connecticut had a decrease in year-over-year home prices, but the decline was small at 0.5 percent. Nevada home prices were the farthest below their all-time HPI high, still 33.5 percent below the March 2006 peak.

YOY HPI

YOY HPI

Figure 2 shows the year-over-year HPI change in select oil-patch areas for April 2016 compared with April 2015. Home prices continued to increase in these areas in April 2016, though the rate of increase slowed for two of the three Texas metropolitan areas. The slowdown in appreciation was the largest for Midland, Texas, which had a year-over-year increase of 9.7 percent in April 2015, but only a 0.3 percent annual gain in April 2016. Midland has the highest concentration of oil employment of all metropolitan areas in the U.S.



[1] The Consumer Price Index (CPI) Less Shelter was used to create the inflation-adjusted HPI.

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