CoreLogic HPI; NAHB Adds 20 Metros to Improving Markets Index

Two more set of housing price data werernreleased on Tuesday in addition to the Lender Processing Services (LPS) informationrncovered here earlier.  The October HomernPrice Index (HPI) from CoreLogic echoed findings from LPS; that pricesrncontinued to weaken on both month-over-month and year-over-year bases while thernNational Association of Home Builders (NAHB) had slightly more encouraging newsrnfrom its NAHB/First American Improving Markets Index (IMI.)  </p

According to the CoreLogic HPI, homernprices were down 1.3 percent compared to September figures, the thirdrnconsecutive monthly decline.  Prices inrnOctober declined 3.9 percent from those in October 2010, a slightly higher lossrnthan the September 2010 to September 2011 change of -3.8 percent.  When distressed homes are removed from thernmix, however, house prices were down only 0.5 percent in October compared tornone year earlier and were -2.1 percent for September 2011 prices compared tornSeptember 2010.</p

Mark Flemming, chief economist forrnCoreLogic said “Home prices continue to decline in response to the weak demandrnfor housing.  While many housingrnstatistics are basically moving sideways, prices continue to correct for arnsupply and demand imbalance.  Lookingrnforward, our forecasts indicate flat growth through 2013.” </p

Including distressed sales, the changernfrom the peak housing price which occurred in April 2006 to the present isrn-32.0 percent.  Excluding distressed salesrnthe change over the same period was -22.4 percent.</p

The highest appreciation in prices includingrndistressed sales were found in West Virginia (+4.8 percent), South Dakota (+3.1rnpercent), New York (+3.0 percent), and the District of Columbia (+2.4 percent).  Those with the greatest depreciation werernNevada (-12.1 percent), Illinois (-9.4 percent), Arizona (-8.1 percent),rnMinnesota (-7.9 percent) and Georgia (-7.3 percent).</p

The NAHB index is based on metropolitan areasrnthat have shown improvement from their respective troughs in housing permits,rnemployment, and house prices for at least six consecutive months.  The IMI identified 20 new additions to thernlist of qualifying areas including several major markets such as Washington,rnDC, San Jose, California and Toledo Ohio. rnOther notable additions were Athens, Georgia; Scranton, Pennsylvania;rnand Lincoln, Nebraska.</p

While 20 markets joined the index, nine fellrnoff, among them Alexandria and Houma Louisiana; Fairbanks, Alaska; Hinesville,rnGeorgia; Lima, Ohio; Pine Bluff, Arkansas, and Sumter, South Carolina; allrnbecause of declining house prices. rnJonesboro, Arkansas and Waco Texas also dropped off, the former becausernof rising unemployment the latter via declining single-family permits.  There are now 41 metro areas on the improvingrnmarkets list, a net gain of 11 since November.</p

“The increases we continue to see inrnthe number and geographic diversity of improving metros are quite encouraging,rnand evidence of the fact that all housing markets are dependent on uniquelyrnlocal factors,” said NAHB Chairman Bob Nielsen.. He noted that as of December,rna total of 21 states and the District of Columbia are represented on thernimproving markets list — up from14 states represented in November.</p

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