January Home Prices Increase Nearly 6 Percent Year-Over-Year

Home prices rose 5.7 percent in January 2015 compared with January 2014, according to CoreLogic’s recent Home Price Index report (PDF file).

Between December 2014 and January 2015, prices increased 1.1 percent.

Nationwide home prices are still 12.7 percent below their peak, which was reached in April 2006.

The CoreLogic HPI Forecasts projects a 0.4 percent increase in home prices in February and a 5.3 percent increase from January 2015 to January 2016.

There is a lack of inventory in parts of the country that is a “big factor” in the heightened home prices, said Anand Nallathambi, president and CEO of CoreLogic, in the report.

“Many homeowners have taken advantage of low rates to refinance their homes, and until we see sustained increases in income levels and employment, they could be hunkered down, so supplies remain tight,” he added.

Home prices trended negative in only two states, Maryland and Connecticut, which recorded decreases of 0.3 percent and 1.9 percent respectively.

The highest year-over-year home price appreciations were seen in Colorado (9.1 percent), Michigan (9 percent), Texas (8.3 percent), Wyoming (8.3 percent) and Nevada (7.6 percent).