Luxury Home Sales in U.S. Mirrors Stock Market Growth

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According to CoreLogic's latest March 2014 MarketPulse report, luxury home sales in the US have been in lockstep with the S & P 500 since the market bottom of April 2009.

In this month's issue, CoreLogic Chief Economist Dr. Mark Fleming examined the risk of another housing bubble in light of large price gains in many markets in 2013. Also, Deputy Chief Economist Sam Khater analyzes residential real estate's "one percent" and the relationship between high-end home sales and the health of the financial markets.

This month's edition also features commentary by CoreLogic President and CEO Anand Nallathambi who observes the housing market duality that 2014 may present.

While it will be a historic reset year with the shift back to a traditional purchase-driven market underway, Nallathambi points out that this year is also widely expected to be the trough year for mortgage originations, driven by lackluster economic growth, as well as a number of other factors.

Additional key findings in the March MarketPulse report include:

• Despite much speculation about another housing bubble, home prices are expected to remain slightly undervalued relative to income levels through the end of 2015.

• In housing's freshman year of healing, a disproportionate recovery emerged in cheaper markets which showed higher new home sales shares than expensive distressed markets.

• Detroit is exhibiting signs of new life, with more than half of ZIP codes in the metro area registering year-over-year growth rates of more than 15 percent in 2013.