In its latest Home Price Index, CoreLogic reported that home prices continue to rise across the nation, with more increases to come in 2015. The company found that home prices, including distressed sales, increased 10.5 percent in April from the previous year. The company projects home prices will increase by one percent month-over-month in May. Furthermore, national home prices are expected to rise by 6.3 percent from April 2014 to April 2015.
Unfortunately, despite the modest April gains, home prices across the nation remain 14.3 percent below their August 2006 peak, according to CoreLogic. Excluding distressed sales, all 50 states and the District of Columbia showed year-over-year home price appreciation in April, with 23 states at or within 10 percent of their peak. Including distressed sales, the five states registering the largest year-over-year home price appreciation in April were California, Nevada, Hawaii, Oregon, and Michigan.
In its second annual survey of housing attitudes, the MacArthur Foundation found 51 percent of American consumers still believe the country is in the midst of its housing crisis, while another 19 percent believe the worst is yet to come. Only 25 percent said they believe the housing crisis is over. At least part of that pessimism stems from challenges related to housing affordability in today's economy. Overall, only half of survey participants said they feel homeownership is still an excellent long-term investment.