Lender Processing Services Inc. (LPS) has announced that its LPS Applied Analytics division updated its home price index (LPS HPI) with residential sales concluded during April 2012. “Home prices have risen 2.5 percent so far this year, indicating an exceptionally strong spring,” said Raj Dosaj, vice president of LPS Applied Analytics. “While prices typically see a boost in the spring, the magnitude and speed of this increase and its consistency across the nation have not been seen since October 2005.”
LPS national home price index values from April 2011-April 2012 were:
►April 30, 2011: $201
►Jan. 1, 2012: $195
►April 30, 2012: $200
The changes in HPI during this time period were:
►April 30, 2011-April 30, 2012: -0.1%
►Jan. 1, 2012-April 30, 2012: +2.5%
►April 1, 2012-April 30, 2012: +1.1%
The graph below shows historical HPI values from January 2000 through April 2012, with a focus on the annualized rate of decline from May 2007 through January 2012, which illustrates the recent market bottom according to the seasonally adjusted HPI. The increase in the HPI since the recent low seen in January 2012 has been the most significant since the market peak in 2005. This increase represents an annualized rate of 13.1 percent per year. (This does not suggest that the current pace will continue throughout 2012, but is included to enable a comparison with the rate of decline from the market peak to the recent low).
Average sales per month over the preceding year are also in in the graph above. Current volumes, which include distressed sales due to foreclosure and short sales, are low compared to any period in the last 12 years. The notable recent peak in sales coincides with a trend change in HPI at the end of the first-time buyers’ tax incentive in April 2010.
Prices increased in 563 of the 579 metropolitan statistical areas (MSAs) covered by LPS data during April, and in the remaining 16 MSAs, prices fell less than 0.2 percent. Only two major MSAs saw a slight price decrease—Los Angeles and Hartford, Conn.—declining 0.04 and 0.03 percent, respectively.