Highest Annual Home Price Appreciation Since March 2006, More Expected -CoreLogic

Home prices measured by CoreLogicrnincreased by 10.5 percent on an annual basis in March, the largestrnyear-over-year increase since March 2006. rnThe company’s HPI Report said March marked the 13^th consecutivernmonth that its home price index that includes distressed sales increasedrncompared to the same month a year earlier. rnDistressed sales include both bank-owned real estate (REO) and shortrnsale transactions.  The index excluding distressedrnsales was up 10.7 percent compared to March 2012 </p

The HPI including short and REO salesrnincreased 1.9 percent from February to March. rnWith distressed sales excluded the month-over-month increase was 2.4rnpercent. </p

“For the first time since Marchrn2006, both the overall index and the index that excludes distressed sales arernabove 10 percent year over year,” said Dr. Mark Fleming, chief economistrnfor CoreLogic. “The pace of appreciation has been accelerating throughoutrn2012 and so far in 2013 leading into the home buying season.”</p

CoreLogic expects the strong upwardrntrend to continue.  Its Pending HPIrnincluding distressed sales projects an increase of 9.6 percent from April 2012 tornApril 2013 and excluding distressed sales a 12 percent annual increase.  On a monthly basis CoreLogic is looking for arn1.3 percent bump in its index with distressed sales and a 2.7 percent increase inrnthe index without them.   The Pending HPI is based on Multiple ListingrnService (MLS) data that measure price changes for the most recent month.</p

“Home prices continue to risernat a double-digit rate in March led by strong gains in the western region ofrnthe U.S. Looking ahead, the CoreLogic pending index for April indicates thatrnupward price appreciation will continue,” said Anand Nallathambi,rnpresident and CEO of CoreLogic. “Much of the price increases we are seeingrnare the result of rising demand among investors and homebuyers for arnstill-limited supply of homes for sale.”</p

The states with the largest annual homernprice appreciation including distressed sales were Nevada (+22.2 percent),rnCalifornia (+17.2 percent), and Arizona (+16.8 percent).  Only four states posted any annual home pricerndepreciation: Delaware (-3.7 percent), Alabama (-3.1 percent), Illinois (-1.8rnpercent) and West Virginia (-0.3 percent).</p

Excluding distressed sales therngreatest appreciation was noted again in Nevada (+20.8 percent) and Californiarn(+16.8 percent) with Idaho third at +16.3. <bNo states lost ground on this index in March. </p

The peak-to-current change in thernnational HPI (from April 2006 to March 2013) was -25.1 percent includingrndistressed sales and -18.3 percent including them.  The states furthest from their peaks arernNevada (-49.2rnpercent), Florida (-42.8 percent), Michigan (-38.9 percent), Arizona (-37.8rnpercent) and Rhode Island (-36.2 percent).

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