Another round of national exuberance on home prices managed to pass over Long Island. Real estate analytics firm CoreLogic indicated today that U.S. home prices skyrocketed 12.2 percent year-over-year in May 2012, the largest such increase since February 2006, and the 15th consecutive month of annual gains.
While these glowing national reports have become typical of late, a closer look at Long Island tends to reveal much less reason for optimism.
May was no different.
Data provided to Newsday.com by CoreLogic showed home prices ticked up just 3.94 percent between May 2012 and May 2013 in Nassau and Suffolk counties. Not only is that less than the national average, but it's also substantially less than the 7.8 percent rise experienced by the New York-metropolitan area and the 9.8 percent jump posted by the state as a whole.
Still, the increase is the largest on Long Island since September 2006 and marks the seventh straight month of annual growth. In fact, home prices have trended higher on Long Island by at least 3 percent annually in every month between February and May 2013, after decreasing or remaining stagnant for each of the 70 months between January 2007 and October 2012.
On a month-over-month basis, home prices increased 0.73 percent between April and May 2013 on Long Island, compared to 2.6 percent nationally.
The Western states, including California, Arizona, Nevada, Hawaii and Oregon, were responsible for much of the national increase, as home prices rose by at least 15 percent year-over-year in each of those states. Only Alabama and Delaware saw home price declines -- both by less than 1 percent.
Though some industry analysts fear the recent upward trend in mortgage rates could slow the recovery, CoreLogic said it expected the surge to continue, noting that the elevated rates still remain well below historic norms and that there's a shortage of housing inventory.
"Across the country, pent up demand and continued low interest rates are fueling strong demand for a limited inventory of properties," Anand Nallathambi, president and CEO of CoreLogic, said in a statement. "We expect that trend to continue to drive up prices throughout the balance of the summer months."