Home prices continued to trend upward in May as growth spread to more areas of the country, according to the Property Intelligence Report (PIR) from DataQuick. The PIR shows especially strong housing performance in areas such as Denver and Salt Lake City recently. Denver saw year-over-year home prices increase 13.6 percent in May, while Salt Lake City enjoyed a 6.4 percent increase. Over the same period, foreclosures were down 47.8 percent in Denver and down 60.0 percent in Salt Lake City.
“Year-over-year sales have been steady in these areas, but home sales have surged in these markets over the past few months,” said Gordon Crawford, Ph.D., vice president of analytics for DataQuick. “Steady employment growth is supporting the robust housing performance in both Denver and Salt Lake City as their central geographic location has allowed each market to diversify their economies and attract new businesses in industries such as defense, tourism and technology.”
Though overall home price growth has been steady of late, Crawford cautions that factors such as unsteady job creation, domestic fiscal issues and low levels of construction could affect growth going forward.
Crawford added, “The year has started strong, but moderate underlying home price drivers will eventually contribute to reductions in demand for housing and tempered growth; although the timing of such a decline is very uncertain.”
DataQuick’s PIR leverages its national property database and analytics expertise to assess 42 of the largest counties in the United States using valuation trends, REO inventory trends and sales trends metrics. Other key findings for May include:
►Home price growth was positive in 33 of the 42 reported counties over the last month
►Home price growth was positive in 30 of the 42 reported counties over the last quarter
►Home price growth was positive in 31 of the 42 reported counties over the year
►Sales increased in 34 of the 42 reported counties over the last month
►Sales increased in 24 of the 42 reported counties over the last quarter
►Sales increased in 25 of the 42 reported counties over the last year
►Foreclosures decreased in 26 of the 42 reported counties over the last month
►Foreclosures decreased in 31 of the 42 reported counties over the last quarter
►Foreclosures decreased in 30 of the 42 reported counties over the last year