Here's an article I copied from Mortgage News that I believe is misleading to the average reader.
The biggest year-over-year home price increase occurred in six years as values rose 12.1% nationwide in April, according to CoreLogic.
Meanwhile, home prices including distressed sales were up 3.2% on a monthly basis. This represents the 14th straight month where values were higher compared to the previous month.
Home price appreciation was greatest in Nevada, up 24.6% in April from March, the Irvine, Calif.-based data
provider’s home price index report revealed. Other states that had notable increases in home values during this time period were California (19.4%), Arizona (17.3%), Hawaii (17%) and Oregon (15.5%).
CoreLogic said Mississippi and Alabama were the only two states that posted month-over-month home price depreciation,
as they saw values drop by 1.7% and 1.6%, respectively.
However, all 50 states registered home price gains on a yearly basis. Anand Nallathambi, president and CEO of
CoreLogic, said he expects this trend to continue “bolstered by tight supplies and pent-up buyer demand.”
Of the top 100 core based statistical areas measured by population, 94 showed year-over-year increases in April, led
by Los Angeles and Phoenix as both were up 19.2%.
“Increasing demand for new and existing homes, coupled with low inventory, has created a virtuous cycle for
price gains, most clearly seen in the Western states with year-over-year gains of 20% or more,” said Mark Fleming, chief economist for CoreLogic.
So that is the article, but I feel what is omitted is the fact Banks have stepped up their foreclosure processes which should result in more available inventory, but Wall Street investors have been in a land grab for the past year. The intent of the large investment trust is to keep these homes as rentals for the near foreseeable future. With less inventory home prices will slowly increase, rents would continue to rise and then what?
Are we looking at a major selloff down the road because too many properties are in the control of these Wall Street entities? Time will tell, but history has told us before how large money can control the market to their advantage.
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