Home Prices Continue Higher, Some States Above Pre-Crisis Peaks

News

Home prices nationwide have now
recovered to within 13.5 percent of the peak they reached in June 2006.  The national Home Price Index (HPI) provided
by Black Knight Financial Services’ Data and Analytics Division is $233,000, inching
closer to the $270,000 HPI that was the pre-crisis peak. This presents an
increase of 7.6 percent from an HPI of $217,000 in March 2014 and a 0.7 percent
increase from February. 

Some areas, notably the States of
Texas and Colorado and some of the larger cities in Texas, surpassed their 2006
price levels last summer and the Texas locations have continued to post new peak
HPI levels virtually every month since. 
Texas established a new record level again in February at $188,000 and
Colorado after dropping back for a few months also set a new high of
$259,000.   Other locations lag far behind the national
averages.   Florida, for example, is
still more than 33 percent below its peak, Arizona is down over 31 percent and
Illinois lags by a quarter and California by 23.4 percent.   

Ten states had increases in their HPI’s greater than that
0.7 national monthly average.  Oregon and
Washington posted monthly gains of 1.4 percent followed by California Nevada,
and Hawaii at 1.3, 1.2, and 1.1 percent respectively.  Other states with larger averages were
Colorado, Missouri, the District of Columbia, Texas, and Illinois.  The smallest improvements were in Ohio and
Vermont which were unchanged from February, Arkansas, up 0.1 percent, and
Connecticut, Maryland, Kentucky, New Jersey, and Massachusetts each of which
had a 0.2 percent increase in their respective HPIs.

 

 

Eight of the ten most improved metropolitan areas were in California
with San Jose and San Francisco leading at 2.6 percent and 2.2 percent gains
respectively.  Other cities with improvements
ranging from 1.4 to 1.8 percent were Santa Rosa, Vallejo, Modesto, Stockton,
and San Louis Obispo and Oxnard.  Seattle
and Portland, Oregon also broke through with monthly increases of 1.7 and 1.5
percent.  While Austin, Dallas, and
Houston had smaller monthly gains than other cities (each increased by 0.9
percent) all three established new peak prices during the month.

The
Black Knight HPI combines
the
company’s property and loan-level databases
to produce a repeat sales
analysis of home prices as
of their transaction dates every month for each of
more than 18,500 U.S. ZIP
codes. The Black Knight HPI represents the price of
non-distressed sales by taking
into account price
discounts for REO and
short sales.

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