Gains for lower-priced homes are seeing significantly higher increases than more expensive homes, according to the latest CoreLogic Home Price Index Report.
CoreLogic researchers analyzed four individual home price tiers. The tiers were broken down into a “low price” tier that reflected homes priced at 75 percent or less of the median; “low to middle price” homes were between 75 and 100 percent of the median; “middle to moderate price” were for homes priced between 100 and 125 percent of the median; and the “high price” tier represented homes priced greater than 125 percent of the median. The lowest price tier rose 9.3 percent year over year compared with 8.5 percent for the low to middle price tier; 7.1 percent for the middle to moderate price tier; and 5.7 percent for the high price tier.
Appreciation in the low price tier began pulling ahead of the other price tiers in 2013. The five-year appreciation rate—from April 2013 to April 2018—for the low price tier was 53 percent compared with the five-year appreciation of 43 percent for the low to middle price tier; 37 percent for the middle to moderate price tier; and 29 percent for the high price tier.
All price tiers combined have risen on an annual basis every month since February 2012, CoreLogic reports. The company's overall index is now 3.9 percent higher than its precrisis peak in April 2006. Four states have showed double-digit year-over-year increases. All of them are in the West: the state of Washington is up 12.8 percent year over year, Idaho is up 12.4 percent, Nevada increased 12.2 percent, and Utah is up 11.5 percent.
The following chart shows the 25 highest-appreciating states, along with their highest and lowest historical price changes, measured year over year:
Source: “Price Gains for Lower-Priced Homes Outpace Those of Higher-Priced Homes,” CoreLogic Insights (June 5, 2018)
