DataQuick reported July home price growth across all 42 examined counties included in the company’s monthly Property Intelligence Report (PIR); with home prices increasing at an average of more than 13 percent over the past year.
In July, 25 of the 42 markets experienced home price increases in excess of 10 percent, with reporting counties ranging from an under one percent increase in Suffolk County, N.Y. to a more than 30 percent price increase in Sacramento County, Calif. DataQuick reports that strong home price growth was driven by a decrease in both foreclosures and overall property availability, as total monthly home sales tapered from the previous reporting period.
However, sharp home price increases amidst low sales volumes could be a cause of concern to overall recovery, according to DataQuick’s vice president of analytics, Gordon Crawford, Ph.D.
“We are seeing a direct correlation between home price appreciation and sales growth, as markets with the largest decrease in overall sales are those experiencing the most rapid increase in home prices,” Crawford said. “While economic drivers including job growth and low interest rates are contributing to increases in demand nationwide, prices in markets with tight supplies of available properties are skyrocketing. The main concern in this situation is that it is unclear if strong home price increases would be happening in the presence of more normal sales volumes.”
Many markets in Florida were listed by the PIR as examples of areas with increased sales growth, but lower average home prices as more existing and unoccupied properties are being made available for purchase. In contrast, markets with the highest rate of average home price appreciation include California and Nevada, where many homeowners are prevented from selling because of negative equity positions and where new construction levels are low.
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 July include:
►Home price growth was positive in all 42 reported counties over the last month and year
►Home price growth was positive in 41 of the 42 reported counties over the last quarter
►Sales increased in 29 of the 42 reported counties over the last month
►Sales increased in 37 of the 42 reported counties over the last quarter
►Sales increased in 28 of the 42 reported counties over the last year
►Foreclosures decreased in 31 of the 42 reported counties over the last month
►Foreclosures decreased in 26 of the 42 reported counties over the last quarter
►Foreclosures decreased in 28 of the 42 reported counties over the last year