Nationally, prices of U.S. single-family homes, including distressed sales, saw a 5.9 percent year-over-year increase on average in May, with 21 states seeing new highs, according to CoreLogic‘s latest update released today.
The U.S. has now seen 52 consecutive months of year-over-year increases. May’s month-over-month gain was 1.3 percent.
“The consistently solid growth in home prices has been driven by the highest resale activity in nine years and a still-tight housing inventory,” said Frank Nothaft, chief economist for CoreLogic.
The 22 states that have reached new home prices highs are: Alaska, Arkansas, Colorado, Hawaii, Iowa, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Montana, North Carolina, Nebraska, New York, Oklahoma, Oregon, South Dakota, Tennessee, Texas, Washington and Wyoming. The District of Columbia also set a new high.
CoreLogic expects home prices to hold mostly at this level. Year-over-year national home prices are forecast to rise by 5.3 percent by May 2017.
“The recent turbulence in financial markets should lead to modestly lower mortgage rates, which will provide even more support to the steadily improving real estate recovery,” said Anand Nallathambi, president and CEO of CoreLogic.