CoreLogic: Metro home prices increase 3.2% in May

SINGLE-FAMILY HOME PRICES rose 3.2 percent in the Providence-Warwick metro area in May over a year earlier, after a 5.9 percent increase in April, CoreLogic reported Tuesday. / COURTESY CORELOGIC
SINGLE-FAMILY HOME PRICES rose 3.2 percent in the Providence-Warwick metro area in May over a year earlier, after a 5.9 percent increase in April, CoreLogic reported Tuesday. / COURTESY CORELOGIC

PROVIDENCE – Single-family home prices in the Providence-Warwick metro area increased 3.2 percent year over year in May, according to the CoreLogic Home Price Index report released Tuesday.

While May was the fifth consecutive month of improvement in the region’s home price index, the 3.2 percent increase represented a less significant improvement than in April, when prices climbed 5.9 percent, and March, when prices climbed 9 percent.

CoreLogic also reported Tuesday that Rhode Island saw a similar slowdown in home-price appreciation, gaining 4 percent year over year in May compared with the 7.2 percent increase reported for April.

Massachusetts, conversely, saw a more significant gain in home prices for May, reporting a 6.1 percent year-over-year increase compared with 5.8 percent the previous month.

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Nationwide, home prices increased 8.8 percent in May compared with May 2013.

“The pace of home price appreciation is cooling off quickly as the weather warms up,” said Mark Fleming, chief economist for CoreLogic. “May’s 8.8 percent year-over-year growth rate is down almost three percentage points from just three months ago. The influences of modestly rising inventory and less-than-expected demand are causing price growth to moderate toward our forecasted expectations.”

The five states with the highest home price appreciation in the 12 months through May were Hawaii with a 13.2 percent gain, California with 13.1 percent, Nevada with 12.6 percent, Michigan with 11.8 percent and New York with 11 percent.

Nationally, 25 states and the District of Columbia were at or within 10 percent of historical peak prices, CoreLogic reported, but Rhode Island’s peak-to-current price gap remains one of the largest, with home prices 28.7 percent below 2006 peak levels.

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