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Home Prices See Largest Monthly Rise in Seven Years

Jul 02, 2013

CoreLogic released its May CoreLogic Home Price Index (HPI) report. Home prices nationwide, including distressed sales, increased 12.2 percent on a year-over-year basis in May 2013 compared to May 2012. This change represents the biggest year-over-year increase since February 2006 and the 15th consecutive monthly increase in home prices nationally. On a month-over-month basis, including distressed sales, home prices increased by 2.6 percent in May 2013 compared to April 2013. Excluding distressed sales, home prices increased on a year-over-year basis by 11.6 percent in May 2013 compared to May 2012. On a month-over-month basis, excluding distressed sales, home prices increased 2.3 percent in May 2013 compared to April 2013. Distressed sales include short sales and real estate owned (REO) transactions. The CoreLogic Pending HPI indicates that June 2013 home prices, including distressed sales, are expected to rise by 13.2 percent on a year-over-year basis from June 2012 and rise by 2.9 percent on a month-over-month basis from May 2013. Excluding distressed sales, June 2013 home prices are poised to rise 12 percent year over year from June 2012 and by 2 percent month over month from May 2013. The CoreLogic Pending HPI is a proprietary and exclusive metric that provides the most current indication of trends in home prices. It is based on Multiple Listing Service (MLS) data that measure price changes for the most recent month. "It's been more than seven years since the housing market last experienced the increases that we saw in May, with indications that the summer months will continue to see significant gains," said Dr. Mark Fleming, chief economist for CoreLogic. "As we approach the half-way point of 2013, home prices continue to respond positively to the reductions in home inventory thus far." "Home price appreciation, particularly in much of the western half of the U.S., is increasing at a torrid pace," said Anand Nallathambi, president and CEO of CoreLogic. "Across the country, pent up demand and continued low interest rates are fueling strong demand for a limited inventory of properties. We expect that trend to continue to drive up prices throughout the balance of the summer months." Highlights as of May 2013: ►Including distressed sales, the five states with the highest home price appreciation were: Nevada (+26 percent), California (+20.2 percent), Arizona (+16.9 percent), Hawaii (+16.1 percent) and Oregon (+15.5 percent). ►Including distressed sales, this month only two states posted home price depreciation: Delaware (-0.6 percent) and Alabama (-0.1 percent). ►Excluding distressed sales, the five states with the highest home price appreciation were: Nevada (+23 percent), California (+18.5 percent), Arizona (+14.7 percent), Idaho (+13.2 percent) and Oregon (+13.2 percent). ►Excluding distressed sales, no states posted home price depreciation in May. ►Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to May 2013) was -20.4 percent. Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -14.9 percent. ►The five states with the largest peak-to-current declines, including distressed transactions, were Nevada (-45.6 percent), Florida (-39.2 percent), Arizona (-34.8 percent), Michigan (-33.3 percent) and Rhode Island (-31.3 percent). ►Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 97 were showing year-over-year increases in May, up from 94 in April 2013.
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