Home Prices Unfazed By Rising Rates in July

Homernprices jumped by 1.8 percent nationally during the month of July.   CoreLogic reported that values on its HomernPrice Index (HPI) which excludes sales of distressed homes, rose in every staternduring the month, and when distressed prices are included only one state,rnDelaware, posted a drop in its HPI.</p

The annualrnrate of increase on the HPI is 12.4 percent and is the 17^{th</supconsecutive month in which the year-over-year index values have increased on arnnational basis.  When distressed salesrn(short sales and lender-owned real estate or ORE) are included the annual appreciationrnis 11.4 percent and the increase from June was 1.7 percent.rn</p}

The statesrnwith the highest annual appreciation are largely those that suffered therngreatest hits to home values since the bubble burst in 2007 and most were alsornhard-hit by foreclosures.  Includingrndistressed sales, Nevada’s prices have risen 27 percent, California is up 23.2rnpercent from July 2012 followed by Arizona (17 percent), Wyoming (16.4 percent),rnand Oregon 15 percent.</p

Whenrndistressed sales are excluded from the analysis Nevada, California, and Arizonarnstill lead the way with annual increases of 24.2 percent, 20.2 percent, andrn14.9 percent respectively.  Utah andrnFlorida round out the top five, each with annual increases of 13.5 percent. </p

“Home prices continue to climbrnacross the nation in July with markets hit hardest during the downturn leadingrnthe way,” said Anand Nallathambi, president and CEO of CoreLogic.rn”Nationally, home prices are now within 18 percent of their peak levelsrnreached in April of 2006.”</p

CoreLogic expects the pricernacceleration to slow a bit in August but still increase by 0.4 percent fromrnJuly including distressed sales and 1.2 percent with those sales excluded.  On an annual basis CoreLogic’s Pending HPIrnindicates an increase including distressed sales of 12.3 percent and 12.2rnpercent excluding distressed sales.  The PendingrnHPI is a proprietary metric based on Multiple Listing Service (MLS) data thatrnmeasure price changes for the most recent month.</p

“Home prices continued to surgernin July,” said Dr. Mark Fleming, chief economist for CoreLogic.rn”Looking ahead to the second half of the year, price growth is expected tornslow as seasonal demand wanes and higher mortgage rates have a marginal impactrnon home purchase demand.”</p

Including distressed transactions,rnthe peak-to-current change in the national HPI (from April 2006 to July 2013)rnwas -17.6 percent. Excluding distressed transactions, the peak-to-currentrnchange in the HPI for the same period was -12.9 percent.  Despite recent double digit increases Nevadarnis still down 43 percent from its pre-crash peak, Florida is off by 37.4rnpercent, and Arizona by 32.5 percent. rnOther states that are far from recovery are Rhode Island (-29.7 percent)rnand Michigan (-27.7 percent).</p

Of the top 100 Core BasedrnStatistical Areas (CBSAs) measured by population, 99 were showingrnyear-over-year increases in July, equaling the measure in June 2013.

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