Strong home price growth was seen on both a quarterly and yearly basis in April in parts of the West region, Clear Capital said in a recent report.
According to Clear Capital’s Home Data Index (HDI) Market Report, Las Vegas, Sacramento and Phoenix topped the chart of U.S. home price growth in April.
In Las Vegas in April, home prices gain 4.2 percent quarterly and 24.3 on a year-over-year basis. Sacramento experienced 3.7 percent gains quarter-over-quarter and 20.3 yearly growth, while Phoenix gained 3.1 quarterly and a tremendous 25.8 percent yearly.
San Jose, San Francisco, Los Angeles and Riverside, CA all showed up on the top 10 list of metropolitan statistical areas (MSAs) showing home price gains, as well. Overall in the U.S. in April, home prices gained 7.2 percent year-over-year.
Despite the rising home prices, home buying activity has not seen a big increase.
“[We] are still confident in the sustainability of the recovery as the market continues to adjust to the new normal,” Dr. Alex Villacorta, director of research and analytics at Clear Capital, said in a statement. “Moderate improvements in the broader economic landscape likely haven’t offered potential homebuyers strong reason to jump back in at the start of the season.”
Other areas of the U.S. that experienced strong quarter-over-quarter gains in April include Atlanta (3.1 percent gains), Chicago (2.9 percent), Miami (2.6 percent) and Seattle (2.3 percent).
“We do expect to see more buyers and sellers ready to take action over the next several months as rising prices continue to free up some underwater mortgages,” Dr. Villacorta said. “And while the national market waits for a spring boost in short-term gains, markets like Las Vegas offer a reminder that pockets of the housing market will continue to vastly outperform national and regional markets.”