Home Price Index in May Up 6.3 Percent Annually

Home prices in May increased 6.3 percent year-over-year, making it the 39th consecutive month with annual price gains, according to the CoreLogic Home Price Index.

Month-over-month, May home prices gained 1.7 percent compared with April.

Home prices remain 8.4 percent below their April 2006 peak.

The HPI Forecast predicts that home prices will increase 0.9 percent month-over-month and 5.1 percent year-over-year in June.

“Higher home prices over the past couple of years have spurred increases in new single-family construction,” said Anand Nallathambi in the report. “Sales of newly built homes during the first five months of 2015 were up 23 percent from a year ago, and as rising values build equity for homeowners, we expect to see more existing homes offered for sale in the coming year.”

The states that registered the highest year-over-year home price increases in May were: South Carolina, 10.3 percent; Colorado, 9.8 percent; Washington, 8.8 percent; Florida, 8.7 percent; and Nevada, 8.3 percent.

Nevada still remains the furthest from its peak value—32.9 percent below. The other states furthest from peak value are Florida, Rhode Island, Arizona and Maryland.