Nationwide, home prices, including distressed sales, rose 7.5 percent in June 2014 compared with June 2013, according to a report released Tuesday by CoreLogic, a data company. This is a moderation in the double-digit price gains seen last year, but still represents 28 straight months of year-over-year appreciation.
"Home prices are continuing to rise fueled by ongoing tight supply, low rates and aggressive investor buying on the East and West coasts," said Anand Nallathambi, CEO of CoreLogic, in a release. "The expected surge in the number of homes for sale has not materialized to date, as many homeowners are staying put and waiting for better economic times and higher prices."
Supply issues are easing somewhat and should continue to moderate price gains, but other issues in the mortgage market are also keeping the price of home ownership higher. While builders complain of construction regulations, mortgage lenders argue they are being handcuffed by a still backward-looking housing finance system.
"Regulators today and Fannie and Freddie are still reacting to the financial crisis and trying to prevent taxpayer liability," said Anthony Hsieh, CEO of loanDepot. "New guidelines or rules are never published or disclosed. This puts everyone at a disadvantage. Lenders don't know how to help credit-worthy consumers become successful borrowers, and consumers don't know what they need to do or have to become successful borrowers.”
Diana @ cnbc
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