Annual Home Price Increase is Largest Since 2006

Home prices increased on a year-over-year basis for thernninth consecutive month according to the CoreLogic Home Price Index (HPI)rnreleased today.  The November HPI was uprn7.4 percent from its November 2011 level and represented the largest jump inrnthe index in nearly seven years.  On arnmonth-over-month basis the HPI, which includes sales of distressed properties,rnwas up 0.3 percent.  CoreLogic said thernall but six states are experiencing year-over-year price gains.</p

When short sales andrnsales of foreclosed properties i.e. distressed sales are excluded from thernanalysis, home prices nationwide increased by 6.7 percent in November comparedrnto those a year earlier and increased 0.9 percent from October to November.</p

CoreLogic’s Pending HPI which is based on Multiple ListingrnService data indicates that December 2012 home prices, including distressedrnsales, can be expected to rise by 7.9 percent on a year-over-year basis fromrnDecember 2011 and fall by 0.5 percent on a month-over-month basis from Novemberrn2012 reflecting a seasonal winter slowdown. </p

The Pending HPI excluding distressed sales projects an increasernof 8.4 percent increase for December 2012 house prices as compared to those arnyear earlier and a positive 0.7 percent change from November 2012 to December. </p

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“As we close out 2012 the pending index suggests prices will remainrnstrong,” said Mark Fleming, chief economist for CoreLogic. “Given thernrecently released QM rules issued by the CFPB are not expected to significantlyrnrestrict credit availability relative to today, the gains made in 2012 willrnlikely be sustained into 2013.”</p

“For the first time in almost six years, most U.S. marketsrnexperienced sustained increases in home prices in 2012,” said AnandrnNallathambi, president and CEO of CoreLogic. “We still have a long way to go tornreturn to 2005-2006 levels, but all signals currently point to a progressivernstabilization of the housing market and the positive trend in home pricernappreciation to continue into 2013.” </p

While six states posted negative price changes on a year over yearrnbasis only two, Delaware and Alabama, remained in that category when distressedrnsales were included.  The five statesrnwhich posted negative price changes on a year over year basis includingrndistressed sales, were Delaware (-4.9 percent), Illinois (-2.2 percent),rnConnecticut (-0.5 percent), New Jersey (-0.5 percent) and Rhode Island (-0.3rnpercent).  Delaware improved to -3.5rnpercent and in a real anomaly Alabama dropped from a positive annual change of 2.2rnpercent to -2.2 percent when distressed sales were excluded.</p

The states with the highest increases including distressed salesrnwere Arizona (20.9 percent), Nevada (14.2 percent), and Idaho (13.8rnpercent.  Excluding distressed sales therngreatest increases were in Arizona (+16.5 percent), North Dakota (+12.9rnpercent), and Nevada (+12.6 percent). </p

Thernnational HPI has posted a -26.8 percent change from the peak HPI in April 2006 including distressed transactions and -20.7 percentrnexcluding them.  </p

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