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CoreLogic sees Continued "Strong and Progressive Uptick in Prices"

by devteam March 4th, 2015 | Share

Home prices, including sales of distressed properties,rncontinued to appreciate on both an annual and a monthly basis in January.  CoreLogic said that its Home Price Indexrnincluding sales of foreclosed property and short sales, increased 5.7 percentrnin January compared to one year earlier. rnOn a monthly basis the increase was 1.1 percent.  </p

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Including distressed sales, only Maryland and Connecticutrnshowed negative home price appreciation at -0.3 percent and -1.9 percentrnrespectively.  The five states with thernhighest home price appreciation were Colorado (9.1 percent), Michigan (9.0rnpercent), Texas and Wyoming (8.3 percent each), and Nevada (7.6 percent.)</p

January was the 35th consecutive month that thernindex has increased on a year-over-year basis and nationally prices are nowrn12.7 percent below the pre-recession peak reached in April 2006.  Four states established new index high pointsrnin January, New York, Wyoming, Texas, and Colorado.  Including distressed sales, 27 states and thernDistrict of Columbia are at or within 10 percent of their peak but five statesrnremain 25 percent or more off of those peaks.  Nevada has the largest deficit at -35.3 percentrnfollowed by Florida, Rhode Island, Arizona, and Connecticut.</p

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Excluding distressed sales the HPI was up 5.6 percentrnyear-over-year and 1.4 percent for the month. rnEvery state and the District of Columbia posted an annual gain andrnnationally prices have returned to within 8.6 percent of the HPI peak.  The five states with the greatest annual pricernappreciation excluding distressed sales were Colorado (8.1 percent), Nevadarn(7.9 percent), Texas (7.8 percent), Massachusetts (7.7 percent), and Oregon (7.4rnpercent).</p

CoreLogic forecasts that home prices including distressedrnsales will increase 0.4 percent from January to February 2015 and 5.3 percentrnfrom January 2015 to January 2016.  ThernHPI excluding distressed sales is projected to increase 0.3 percent and 4.9rnpercent for the two periods.  </p

“House price appreciation has generally been stronger in thernwestern half of the nation and weakest in the mid-Atlantic and northeastrnstates,” said Dr. Frank Nothaft, chief economist at CoreLogic. “In part, theserntrends reflect the strength of regional economies. Colorado and Texas have hadrnstronger job creation and have seen 8 to 9 percent price gains over the past 12rnmonths in our combined indexes. In contrast, values were flat or down inrnConnecticut, Delaware and Maryland in our overall index, including distressedrnsales.”</p

Anand Nallathambi, president and CEO of CoreLogic said, “Werncontinue to see a strong and progressive uptick in home prices as we enterrn2015. We project home prices will continue to rise throughout the year and intorn2016.  A dearth of supply in many partsrnof the country is a big factor driving up prices. Many homeowners have takenrnadvantage of low rates to refinance their homes, and until we see sustainedrnincreases in income levels and employment they could be hunkered down sornsupplies may remain tight. Demand has picked up as low mortgage rates and therncut in the FHA annual insurance premium reduce monthly payments for prospectivernhomebuyers.”</p

Ninety-four of the top 100 Core Based Statistical Areasrn(CBSAs) measured by population showed year-over-year increases in January 2015.rnThe six that declined were New Orleans, Bridgeport-Stamford-Norwalk; Rochester,rnBaltimore, Wilmington, Delaware; and Hartford. rn

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.

About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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