While U.S. home prices rose 10.5-percent in April from 12 months earlier, the increase was the smallest annual gain in the past 14 months, according to new data from CoreLogic. California saw the biggest gains, with a year over year 15.6-percent increase, and Nevada (14.8-percent) and Hawaii (14.1-percent) rounded out the top three.
Analysts believe that higher mortgage rates and a limited supply of available homes have slowed the housing recovery. Sales of existing homes were 6.8-percent lower than last April, although they were up from March of this year.
Home prices are still climbing in most cities, with 95 of the 100 largest metro areas reporting higher year-over-year gains in April. According to CoreLogic, home prices in 23 states are at or within 10 percent of their previous peaks.
“Home prices are continuing to rise as we head into the summer months,” said Anand Nallathambi, president and CEO of CoreLogic. “The purchase market continues to suffer from a dearth of inventory which we expect will continue to drive prices up over the year.”
While home sales decline, the rental market is accelerating, according to new data from Trulia. Rents are up 5.1-percent across the US, with apartment rentals increasing 5.8-percent and single-family homes gaining 2.1-percent. The biggest gains in the rental market were seen in the Bay Area cities of San Francisco, San Diego and Oakland.
Photo Above: 32755 Wellbrook Drive