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Home Price Surge Will Accelerate Next Month – CoreLogic

by devteam July 2nd, 2013 | Share

There is a remarkablerndegree of agreement among prevalent purveyors of Home Price Indices that prices this spring have risen higher and faster</bthan in any period since early 2006.  Joining the chorus today, CoreLogic said today that its Home Price Index (HPI) rosern12.2 percent in May compared to May 2012, marking the biggest annualrnincrease since February 2006.</p

CoreLogic said that Mayrnwas the 15th consecutive month that its index, whichrnincludes distressed home sales, had noted a national increase inrnprices. CoreLogic also said that prices had increased 2.6 percent onrna month-over-month basis. </p

On a second index that excludes distressed sales,rnthat is short sales and sales of owned real estate (REO), pricesrnincreased on a year-over-year basis by 11.6 percent. On arnmonth-over-month basis, the index increased 2.3 percent in May 2013rncompared to April 2013. </p

The Pending HPI issued by the company projects thatrnprices in June, including distressed sales, will rise by 13.2 percentrnyear-over-year and by 2.9 percent on a May to June basis. Excludingrndistressed sales CoreLogic expects home prices will rise 12 percentrnfrom June 2012 to June 2013 and 2 percent on a month-over-monthrnbasis. The Pending HPI is based on data from Multiple ListingrnServices.</p

The five states enjoying the highest homernappreciation were Nevada (+26 percent), California (+20.2 percent),rnArizona (+16.9 percent), Hawaii (+16.1 percent) and Oregon (+15.5rnpercent). Excluding distressed sales, states with the greatestrnappreciation were Nevada (+23 percent), California (+18.5 percent),rnArizona (+14.7 percent), Idaho (+13.2 percent) and Oregon (+13.2rnpercent). </p

There were no states that slipped on the HPIrnexcluding distressed sales but both Delaware (-0.6 percent) andrnAlabama (-0.1 percent) posted depreciation on the scale includingrndistressed sales. Of the top 100 Core Based Statistical Areasrn(CBSAs) measured by population, 97 were showing year-over-yearrnincreases in May, up from 94 in April 2013. </p

Including distressed transactions, thernpeak-to-current change in the national HPI (from April 2006 to Mayrn2013) was -20.4 percent. Excluding distressed transactions, thernpeak-to-current change in the HPI for the same period was -14.9rnpercent. </p

“It’s been more than seven years since thernhousing market last experienced the increases that we saw in May,rnwith indications that the summer months will continue to seernsignificant gains,” said Dr. Mark Fleming, chief economist forrnCoreLogic. “As we approach the half-way point of 2013, homernprices continue to respond positively to the reductions in homerninventory thus far.”</p

“Home price appreciation, particularly in muchrnof the western half of the U.S., is increasing at a torrid pace,”rnsaid Anand Nallathambi, president and CEO of CoreLogic. “Acrossrnthe country, pent up demand and continued low interest rates arernfueling strong demand for a limited inventory of properties. Wernexpect that trend to continue to drive up prices throughout thernbalance of the summer months.”

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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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