Home prices in December posted the largest annual increase in
nearly seven years according to CoreLogic's Home Price Index (HPI) report. December was also the 10th consecutive month
in which home prices increased nationally.
The index that included distressed sales (sales of owned real
estate and short sales) increased by 8.3 percent compared to December 2011, the
largest increase since May 2006. With
distressed sales excluded the HPI increased 7.5 percent year over year. Prices were up 0.4 percent including
distressed sales and 0.9 percent excluding distressed sales compared to
CoreLogic's Pending HPI including distressed sales predicts that
prices in January will rise by 7.9 percent on a year-over-year basis from
January 2012 and fall by 1 percent on a month-over-month basis from December
2012, reflecting a seasonal winter slowdown. Excluding distressed sales, prices
are expected to rise 8.6 percent on an annual basis and 0.7 percent month over
month. The CoreLogic Pending HPI is based on Multiple Listing Service (MLS)
data that measure price changes for the most recent month.
are heading into 2013 with home prices on the rebound," said Anand Nallathambi,
president and CEO of CoreLogic. "The upward trend in home prices in 2012 was
broad based with 46 of 50 states registering gains for the year. All signals
point to a continued improvement in the fundamentals underpinning the U.S.
housing market recovery."
The four states in which prices decreased in December were Delaware
(-3.4 percent), Illinois (-2.7 percent), New Jersey (-0.9 percent) and
Pennsylvania (-0.5 percent). When
distressed sales were excluded three states had price depreciation, Delaware (-1.9
percent), Alabama (-1.0 percent) and New Jersey (-0.5 percent).
five states with the greatest home price appreciation including distressed
sales were Arizona (+20.2 percent), Nevada (+15.3
percent), Idaho (+14.6 percent), California (+12.6 percent) and Hawaii (+12.5
percent). Excluding distressed sales the
five highest were Arizona (+16.4 percent), Nevada (+14.7 percent),
California (+12.8 percent), Hawaii (+11.7 percent) and North Dakota (+10.8
Including distressed transactions, the peak-to-current change in
the national HPI (from April 2006 to December 2012) was -26.9 percent.
Excluding distressed transactions, the peak-to-current change in the HPI for
the same period was -20.8 percent.
Of the top 100 Core Based Statistical Areas (CBSAs) measured by
population, only 16 are showing year-over-year declines in December, two fewer
than in November.