Highest Annual Home Price Appreciation Since March 2006, More Expected -CoreLogic
Home prices measured by CoreLogic
increased by 10.5 percent on an annual basis in March, the largest
year-over-year increase since March 2006.
The company's HPI Report said March marked the 13th consecutive
month that its home price index that includes distressed sales increased
compared to the same month a year earlier.
Distressed sales include both bank-owned real estate (REO) and short
sale transactions. The index excluding distressed
sales was up 10.7 percent compared to March 2012
The HPI including short and REO sales
increased 1.9 percent from February to March.
With distressed sales excluded the month-over-month increase was 2.4
"For the first time since March
2006, both the overall index and the index that excludes distressed sales are
above 10 percent year over year," said Dr. Mark Fleming, chief economist
for CoreLogic. "The pace of appreciation has been accelerating throughout
2012 and so far in 2013 leading into the home buying season."
CoreLogic expects the strong upward
trend to continue. Its Pending HPI
including distressed sales projects an increase of 9.6 percent from April 2012 to
April 2013 and excluding distressed sales a 12 percent annual increase. On a monthly basis CoreLogic is looking for a
1.3 percent bump in its index with distressed sales and a 2.7 percent increase in
the index without them. The Pending HPI is based on Multiple Listing
Service (MLS) data that measure price changes for the most recent month.
"Home prices continue to rise
at a double-digit rate in March led by strong gains in the western region of
the U.S. Looking ahead, the CoreLogic pending index for April indicates that
upward price appreciation will continue," said Anand Nallathambi,
president and CEO of CoreLogic. "Much of the price increases we are seeing
are the result of rising demand among investors and homebuyers for a
still-limited supply of homes for sale."
The states with the largest annual home
price appreciation including distressed sales were Nevada (+22.2 percent),
California (+17.2 percent), and Arizona (+16.8 percent). Only four states posted any annual home price
depreciation: Delaware (-3.7 percent), Alabama (-3.1 percent), Illinois (-1.8
percent) and West Virginia (-0.3 percent).
Excluding distressed sales the
greatest appreciation was noted again in Nevada (+20.8 percent) and California
(+16.8 percent) with Idaho third at +16.3.
No states lost ground on this index in March.
The peak-to-current change in the
national HPI (from April 2006 to March 2013) was -25.1 percent including
distressed sales and -18.3 percent including them. The states furthest from their peaks are
percent), Florida (-42.8 percent), Michigan (-38.9 percent), Arizona (-37.8
percent) and Rhode Island (-36.2 percent).