National home prices saw both quarterly and yearly gains in June, and all four regions across the U.S. posted quarterly increases, according to the Home Data Index (HDI) released by Clear Capital Tuesday.
Home prices rose by 1.7 percent in June from the previous quarter and a year ago, and growth is expected to continue into the second half of the year at a rate of 2.5 percent, Clear Capital reported.
Broad-based regional gains and expanding progress are reasons for the current gains and expected future growth.
Out of all four regions, the West saw the greatest quarterly increase at 3.5 percent, followed by the Midwest (1.2 percent), the South (1.5 percent), and the Northeast (0.8 percent).
“June home price trends provided further evidence that housing has turned the corner, with the momentum of the recovery picking up speed,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital.
Villacorta noted that even the Midwest started to catch up with the other regions, shedding the drag of recent declines.
With its 1.2 percent gain in June, the Midwest saw the greatest quarterly improvement after posting a 2 percent quarterly loss in May.
The West was also notable due to the region’s gains across all price levels as demand outpace supply for the region. Clear Capital explained in a report that recovery generally begins in lower priced segments for most markets, but the West is seeing price increases in higher priced homes.
Out of the top 50 metros areas, 7 saw quarterly price declines in June, but only four reported declines greater than 1 percent.
The 43 metros that posted increases averaged gains of 3 percent. Among the metros that saw values pick up, 10 experienced price growth greater than 5 percent.
Phoenix was highlighted as a market with consistent growth over the past 10 months. Quarterly growth for the metro was 8.7 percent and annual gains were 20.4 percent.
For the year, Seattle is expected to surpass all other markets, with prices projected to increase by 14.4 percent by the end of the year, the report stated.
“Looking forward over the rest of 2012, we expect to see national, regional, and most metro markets improve by varying degrees. And while it’s encouraging to see broad-based advancements coupled with positive forecasts, we remain cautiously optimistic. The current strength in housing fundamentals remains vulnerable to domestic and global economic challenges,” said Villacorta
By Esther Cho, DSNews