Idaho is the only state that had annual home price growth over 10% in May, according to a new CoreLogic report.
Home prices increased nationally by 3.6% from May 2018, reported CoreLogic, a global property information and analytics firm based in Irvine, Calif. By state, annual home price growth varied from a 1.7% decline in North Dakota to a 10.7% increase in Idaho, the nation’s fastest-growing state.
The states with the largest year-over-year gains in home prices are not on the coasts. Rounding out the second and third slots are Utah with a 7.8% gain and South Dakota, where prices rose by 7.7% year over year, said CoreLogic.
The CoreLogic forecast indicates home prices nationwide will increase to 5.6% from May 2019 to May 2020.
Frank Martell, president and CEO of CoreLogic, called the acceleration in home prices “a good and bad thing at the same time.”
“Higher prices and a lack of affordable homes are two of the most challenging issues in housing today, and every buyer, seller and industry participant is being impacted,” he said. “The long-term solution lies in expanding supply, which will require aggressive and effective collaboration between policy makers, state and local government entities and home builders.”
While national prices showed moderate acceleration in May, Idaho is the only state to post a double-digit gain for the month. It has seen double-digit growth every month except for one since November 2017.
Prior to the Great Recession, the home gain price peak in Idaho was July 2007. Prices then fell by 38.2% through Feb. 2011. Since then, prices have completely made up these losses and are now up nearly 25% from the previous peak, according to CoreLogic.
Nationwide, for home buyers, financing is looking more favorable.
“Interest rates on fixed-rate mortgages fell by nearly one percentage point between November 2018 and this May,” said Frank Nothaft, chief economist at CoreLogic. “This has been a shot-in-the-arm for home sales. Sales gained momentum in May and annual home-price growth accelerated for the first time since March 2018.”