Home Prices up in August, Sharper Increase Predicted for September

Home prices in August posted the largest annual increase inrnover six years according to data released this morning by CoreLogic.  The company’s August Home Price Index (HPI)rnwas up 3.6 percent over the August 2011 index number and was 0.3 percent abovernthe index in July 2012.  This is thernsixth consecutive month that home prices have increased nationally on both arnmonth-over-month and year-over-year basis. rnCoreLogic’s HPI, which includes distressed sales, increased in all butrnsix states </p

Excluding distressed sales – sales of bank owned real estatern(REO) and short sales – home prices increased 4.9 percent on an annual basis inrnAugust and 1 percent from the July index.   </p

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Core-Logic is predicting that, when reported next month,rnSeptember home sales including distressed sales will be up another 5 percent onrnan annual basis but will fall by 0.3 percent from August figures as the summerrnsales season comes to a close. When distressed sales are excluded CoreLogic isrnpredicting that it Pending HPI will be up 6.3 percent year-over-year and 0.6rnpercent month-over-month.</p

“Again this month prices rose on a year-over-year basis and ourrnexpectation is for that to continue in September based on our pending HPIrnforecast,” said Mark Fleming, chief economist for CoreLogic. “The housingrnmarkets gains are increasingly geographically diverse with only six states continuingrnto show declining prices.”</p

Some of the states that took the greatest hits to their homernvalues during the housing crisis are among those bouncing back thernfastest.  Arizona had the largest annual percentagernincrease both including distressed sales (+18.2 percent) and excluding them (+13.0rnpercent). Idaho was second for all sales (10.4 percent) and fourth whenrndistressed sales were excluded (+8.6) while Utah was second in market salesrn(+10.0 percent) and fourth (+8.9 percent) when distressed sales were included.</p

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The three states with therngreatest depreciation including distressed sales were Rhode Island (-2.6 percent),rnIllinois (-2.3 percent), and New Jersey (-1.4 percent.)  Excluding distressed sales, prices in RhodernIsland were down 1.7 percent, in New Jersey 1.4 percent, and in Alabama -0.2rnpercent.</p

 Including distressedrntransactions, the peak to current change in the national HPI was 26.7 percent.  Without distressed sales the decline was 19.9rnpercent.  When distressed sales arernincluded the decline was greatest in Nevada (-54.7 percent), Florida (-44.3rnpercent) and Arizona (-42.0 percent.)</p

 “Sustained economic recovery inrnthe U.S. requires a healthy housing market. You cannot have a healthy housingrnmarket without price stabilization and ultimately home price appreciation,”rnsaid Anand Nallathambi, president and CEO of CoreLogic. “Improving pricingrntrends over the past few months and our forecast for continued gains in Septemberrnbode well for a progressive rebound in the residential housing market.”

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