Reports: Home prices more stable in early 2015
Posted on Wednesday, April 8, 2015 at 8:02:56 AM
Higher home prices can certainly be a good sign for the housing market. They can help current homeowners gain more equity in their properties and often serve as an indication of a stronger economy.
According to a recent CoreLogic report, home prices were more stable in early 2015. From February 2014 to February 2015, prices climbed 5.6 percent, good for three years in a row of yearly price gains. When comparing January to February, prices ticked up only 1.1 percent
"Since the second half of 2014, the dwindling supply of affordable inventory has led to stabilization in home price growth, with a particular uptick in low-end home price growth over the last few months," explained Frank Nothaft, chief economist for CoreLogic. "From February 2014 to February 2015, low-end home prices increased by 9.3 percent compared to 4.8 percent for high-end home prices, a gap that is three times the average historical difference."
Furthermore, the S&P Dow Jones Indices reported that the strongest yearly home price gains were found in three cities: Denver, Miami and Dallas. For Denver and Miami, year-over-year gains reached 8.4 percent and 8.3 percent, respectively.
With low residential financing rates in the market today, affordability is still high for homebuyers, and rising home prices remain a sign of a quality housing market.