The US property market was unable to escape the wrath of the global financial crisis, but figures now suggest the sector's woes could be over. CoreLogic is just one industry body to publish data showing growth and in March it revealed home prices nationwide, including distressed sales, increased 10.5 per cent on a year-over-year basis.
This represents the greatest year-over-year increase since March 2006 and is the 13th month of consecutive national increases. Month-on-month, prices increased by 1.9 per cent. This figure jumps to 2.4 per cent when excluding distressed sales. According to CoreLogic's Pending HPI, this rise is set to continue and over the year, April's figures are expected to show a 12 per cent increase, excluding distressed sales.
Dr Mark Fleming, chief economist for CoreLogic, said: "For the first time since March 2006, both the overall index and the index that excludes distressed sales are above ten per cent year over year. The pace of appreciation has been accelerating throughout 2012 and so far in 2013 leading into the home buying season."
The western region of the US has proven to be the most active area, but demand is rising across the country, both among investors and homebuyers. There is also a limited supply of stock, helping to drive up prices. Including distressed sales, Nevada, California, Arizona, Idaho and Oregon were the states to enjoy the highest levels of property appreciation. Values increased in the areas by 22.2 per cent, 17.2 per cent, 16.8 per cent, 14.5 per cent and 14.3 per cent respectively.
Only four states experienced home depreciation in March: Delaware (-3.7 per cent), Alabama (-3.1 per cent), Illinois (-1.8 per cent) and West Virginia (-0.3 per cent). This was driven by price drops in the distressed sale segment. Excluding distressed sales, no states experienced price depreciation, showing the growing strength of real estate in the US.
- Friday 17 May 2013