IRVINE, Calif. – Single-family home prices in the Providence-New Bedford-Fall River metropolitan area rose 6 percent year over year in May, according to a new CoreLogic Home Price Index report released Tuesday.
Excluding distressed sales, prices increased 7.5 percent over May 2012. Statewide, Rhode Island saw similar numbers: including distressed sales, home prices rose by 6.1 percent year over year, ranking the state 24th in the country compared to other states and the District of Columbia. Excluding distressed sales, Rhode Island prices rose by 6.7 percent.
Those figures were still well below the national rates. Home prices throughout the country, including short sales and real estate owned transactions, rose by 12.2 percent over May 2012, the 15th consecutive month of rising prices. Excluding distressed sales, they climbed 11.6 percent year-over-year.
The 12.2 percent national rise was the largest year-over-year leap in home prices since February 2006. CoreLogic’s Pending Home Price Index predicted June to break that record again, with an estimated increase of 13.2 percent over June 2012, including distressed sales.
“It's been more than seven years since the housing market last experienced the increases that we saw in May, with indications that the summer months will continue to see significant gains,” Mark Fleming, chief economist for CoreLogic, said in a statement.
Nationwide, the western United States was home to most of the highest home price appreciation. Including distressed sales, the five states with the largest year-to-year increases were Nevada, California, Arizona, Hawaii and Oregon. Excluding distressed sales, Idaho replaced Hawaii in the top five.
“Across the country, pent up demand and continued low interest rates are fueling strong demand for a limited inventory of properties,” Anand Nallathambi, CoreLogic president and CEO, said in prepared remarks.
Only Delaware and Alabama posted falling year-to-year home prices, including distressed sales. Excluding distressed sales, no states saw home price depreciation.
The “peak-to-current” change, measuring the difference in home prices from April 2006 to May 2013, was -20.4 percent nationwide, including distressed sales. The five states with the greatest declines were Nevada, Florida, Arizona, Michigan and Rhode Island.