Home prices nationwide, including distressed sales, climbed by 5.7% year-over-year in January 2015, according to data gathered by proprietary analytics provider CoreLogic.
CoreLogic's Home Price Index found that January was the 35th consecutive month in which home prices increased year-over-year. On a month-to-month basis U.S. home prices, including distressed sales, rose by 1.1% in January from the revised December number, the Irvine, Calif.-based company said. Without distressed sales, such as short sales or real estate owned transactions, that figure goes up to 1.4%.
The five states with the highest home price growth, when including distressed sales, were Colorado (9.1%), Michigan (9%), Texas (8.3%), Wyoming (8.3%) and Nevada (7.6%). On the other end, Maryland and Connecticut were the only two states to experience home price declines, at 0.3% and 1.9%, respectively.
Overall, CoreLogic found that, including distressed sales, 27 states and the District of Columbia have reached or are approaching 10% of their peak. Additionally, four additional states — New York, Wyoming, Texas and Colorado — have reached new high prices since the HPI started in 1976.
When it comes to the rising prices, low supply is to blame, according to CoreLogic president and CEO Anand Nallathambi.
"Many homeowners have taken advantage of low rates to refinance their homes, and until we see sustained increases in income levels and employment they could be hunkered down so supplies may remain tight," Nallathambi said in the March 3 release announcing the January results.
He added that low mortgage rates and the cut in the Federal Housing Administration annual insurance premium have boosted demand as they moderate the monthly payments for homebuyers.
Looking ahead, home prices are expected to increase 0.4% in February month-to-month and 5.3% in January 2016 year-over-year, according to CoreLogic.
